<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY
August 2000
Dear Shareholder:
We are pleased to provide you with the Annual Report for General American
Capital Company, covering financial results through June 30, 2000. General
American Capital Company is an underlying investment vehicle for variable
universal life insurance and variable annuity products offered by General
American Life Insurance Company and other affiliated insurance companies.
This report contains financial data and management commentary organized by
fund so that you can see each fund's total picture in one place. We've also
included an Economic Overview for a broader prospective on the events that
influenced investment performance over the first six months of the year.
We hope you find this report informative. Thank you for choosing our
investment funds.
/s/ Richard A. Liddy
Richard A. Liddy
Chairman of the Board
<PAGE>
<PAGE>
ECONOMIC OVERVIEW
Evidence of slower economic growth continues to accumulate. Higher interest
rates, a sluggish stock market, and higher energy prices are acting to dampen
growth. We think that inflation will gradually rise through 2000. We expect
further Federal Reserve rate hikes in response to inflation risk. Higher
energy prices and Fed policy pose a risk of recession in 2001.
After dropping below 2 percent last year, the 12-month change in core
inflation has started to move higher. Oil prices rose back over $30 per
barrel, after falling to $25 early this spring. Prices of gasoline, natural
gas and electricity have all moved higher. Higher energy prices are likely to
keep the overall Consumer Price Index rising faster than the core rate this
summer. Moreover, larger gains in the Employment Cost Index suggest that
tight labor markets are pushing up labor cost inflation.
Inflation news had only modest impact on financial markets. With spreading
signs of slower economic growth, there seemed to be less concern with future
inflation. Prior to this spring, housing was the only major sector that had
experienced slower growth. In the second quarter, signs of slowdown spread.
Retail sales fell in both April and May, the first back-to-back declines
since 1997. After growing at an annual rate in excess of 5 percent for three
consecutive quarters, the economy appears to have slipped to less than a 4
percent rate last quarter.
We think the economy is slowing, but we expect the Fed to keep hiking short-
term interest rates, until growth has slowed enough to push up unemployment
modestly. The most likely outlook is a "soft landing", in which the Fed
pushes growth down to 2.5 to 3.5 percent, and then maintains short-term
interest rates at high levels to prevent a resurgence in growth. In this
scenario, the Federal government would continue to run large budget
surpluses; the resulting pay-down of Treasury debt would keep downward
pressure on longer Treasury bond yields.
We see a growing risk of recession in early 2001 (although it is not the most
likely outlook). If energy prices stay high, consumers will feel a financial
pinch during the coming winter heating season - on top of this summer's
higher gasoline prices. Low inventories of natural gas and heating oil are
making higher prices increasingly likely. In addition, if the stock market
stays flat or down, households may start to feel a greater need to modify
spending habits and increase saving. Saving activity has fallen to very low
levels; it would require a significant cutback in spending growth (relative
to income growth) to restore saving to historic levels. A short, shallow
recession would push up unemployment modestly and reduce inflation pressures.
This might be the only scenario that would allow the Fed to lower short-term
interest rates significantly.
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
--------------------------------------------------------------------
MANAGEMENT DISCUSSION
Market jitters were the story during the early part of the second
quarter, affecting the majority of equities aside from the largest
value stocks. Investors were quick to get out of new economy
sectors and into more traditional industries as analysts began
questioning the profitability of the internet-related companies. In
June, growth stocks made a nice recovery as investors began to ease
back into the technology sector and stocks in general. The S&P 500
Index Fund (down 0.1% gross) closely tracked the performance of its
benchmark, the S&P 500 index (down 0.4%), in the first six months
of 2000.
--------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
--------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 7.17% 23.50% 17.49% 15.19%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
2
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
<TABLE>
--------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
June 30, 2000 (unaudited)
ASSETS:
Investments, at market value:
(see accompanying schedule)
Common Stocks $768,894,919
Short term securities 2,919,614
------------
Total investments 771,814,533
Cash 140,072
Broker receivable 1,651,789
Dividends receivable 547,930
------------
Total assets 774,154,324
------------
LIABILITIES:
Payable to Conning Asset Management
Company 170,275
Payable to General American Life
Insurance Company 34,055
------------
Total liabilities 204,330
------------
Total net assets $773,949,994
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 12,742,354
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 60.74
TOTAL AMORTIZED COST OF INVESTMENTS $455,810,669
</TABLE>
<TABLE>
--------------------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the six months ended June 30, 2000
(unaudited)
INVESTMENT INCOME:
Dividends $ 4,755,159
Interest 148,413
-------------
Total investment income 4,903,572
-------------
EXPENSES:
Investment management charge 1,049,102
Administrative charge 209,821
-------------
Total expenses 1,258,923
-------------
Net investment income 3,644,649
-------------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 114,413,603
-------------
NET UNREALIZED LOSS ON INVESTMENTS:
Net unrealized loss on investments (121,878,722)
-------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (3,820,470)
=============
</TABLE>
<PAGE>
<TABLE>
----------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- ------------
2000<F*> 1999
------------- ------------
<S> <C> <C>
Operations:
Net investment income $ 3,644,649 $ 7,805,583
Net realized gain 114,413,603 53,583,272
Net unrealized gain (loss) (121,878,722) 88,991,629
------------ ------------
Net increase (decrease) in net assets from
operations (3,820,470) 150,380,484
Capital share transactions (120,918,243) 47,818,779
------------ ------------
Net increase (decrease) in net assets (124,738,713) 198,199,263
Net assets, beginning of year 898,688,707 700,489,444
------------ ------------
Net assets, end of period $773,949,994 $898,688,707
============ ============
<FN>
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
3
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND<F*>
<TABLE>
---------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
--------- -----------------------------------------------------
2000<F**> 1999 1998 1997 1996
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 60.87 $ 50.49 $ 39.40 $ 29.67 $ 24.14
-------- -------- -------- -------- --------
Income from operations:
Net investment income 0.26 0.54 0.53 0.52 0.53
Net realized and unrealized gain (loss) on
investments (0.39) 9.84 10.56 9.21 5.00
-------- -------- -------- -------- --------
Net increase (decrease) in asset value per
share (0.13) 10.38 11.09 9.73 5.53
-------- -------- -------- -------- --------
Net asset value, end of period $ 60.74 $ 60.87 $ 50.49 $ 39.40 $ 29.67
======== ======== ======== ======== ========
Total return <F2> (0.22%) 20.57% 28.15% 32.80% 22.89%
Net assets, end of period (in thousands) $773,950 $898,689 $700,489 $501,577 $340,201
Ratio of expenses to average net assets <F3> 0.30% 0.30% 0.30% 0.30% 0.30%
Ratio of net investment income to average net
assets <F3> 0.87% 0.99% 1.21% 1.48% 1.97%
Portfolio turnover rate 7.74% 13.46% 13.14% 12.61% 8.93%
<CAPTION>
YEAR ENDED DECEMBER 31
--------------------------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 17.64 $ 17.44 $ 15.88 $ 14.78 $ 11.35
-------- -------- -------- -------- --------
Income from operations:
Net investment income 0.46 0.44 0.41 0.39 0.38
Net realized and unrealized gain (loss) on
investments 6.04 (0.24) 1.15 0.71 3.05
-------- -------- -------- -------- --------
Net increase in asset value per share 6.50 0.20 1.56 1.10 3.43
-------- -------- -------- -------- --------
Net asset value, end of year $ 24.14 $ 17.64 $ 17.44 $ 15.88 $ 14.78
======== ======== ======== ======== ========
Total return <F2> 36.85% 1.15% 9.83% 7.45% 30.21%
Net assets, end of year (in thousands) $247,313 $169,303 $161,761 $123,458 $102,076
Ratio of expenses to average net assets <F3> 0.30% 0.30% 0.30% 0.30% 0.30%
Ratio of net investment income to average net
assets <F3> 2.19% 2.50% 2.47% 2.67% 2.89%
Portfolio turnover rate 4.75% 7.38% 2.56% 4.38% 3.92%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F*> This Fund formerly known as the Equity Index Fund.
<F**> Unaudited
</TABLE>
See accompanying notes to the financial statements.
4
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
<TABLE>
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
Aerospace & Military Technology (0.83%)
<S> <C> <C>
Boeing Co. 53,780 $ 2,248,649
Crane & Co. 4,050 98,464
General Dynamics Corp. 12,500 653,125
B F Goodrich 6,800 231,622
Lockheed Martin Corp. 24,506 608,043
Rockwell International Corp. 11,750 370,125
Teledyne Technologies
Inc.<F*> 1 17
Textron Inc. 9,200 499,670
United Technologies Corp. 29,400 1,730,925
------------
6,440,640
------------
Air Transport (0.27%)
AMR Corp.<F*> 9,100 240,577
Delta Air Lines Inc. 8,000 404,496
Fedex Corp.<F*> 17,960 682,480
Southwest Airlines 31,237 591,535
US Air Group<F*> 4,400 171,600
------------
2,090,688
------------
Apparel (0.27%)
CVS Corp. 24,300 972,000
Liz Claiborne Inc. 3,700 130,425
Nike Inc. Class B 17,100 680,785
Reebok Intl. Inc.<F*> 3,400 54,186
Russell Corp. 2,000 40,000
Springs Industries 1,100 35,200
VF Corp. 7,300 173,828
------------
2,086,424
------------
Business Machines (6.23%)
Analog Devices<F*> 21,700 1,649,200
Apple Computer Inc.<F*> 20,000 1,047,500
Compaq Computer Corp. 104,924 2,682,067
EMC Corp./Mass.<F*> 126,150 9,705,603
Gateway Inc.<F*> 19,600 1,112,300
IBM Corp. 111,780 12,246,840
Lexmark International
Group<F*> 7,900 531,275
Milacron Inc. 2,200 31,900
Oracle Corp.<F*> 174,886 14,701,267
Pitney Bowes Inc. 16,400 656,000
Unisys Corp.<F*> 19,200 279,590
Veritas Software Corp.<F*> 24,100 2,723,662
Xerox Corp. 41,150 853,863
------------
48,221,067
------------
Business Services (11.25%)
Adaptec Inc.<F*> 6,400 145,600
Adobe Systems Inc. 7,400 962,000
Automatic Data Processing
Inc. 39,100 2,094,274
BMC Software Inc.<F*> 15,100 550,908
Cabletron Systems<F*> 11,200 282,800
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Business Services (continued)
Cendant Corp.<F*> 43,742 $ 612,388
Ceridian Corp.<F*> 8,900 214,152
Cisco Systems Inc.<F*> 424,100 26,956,644
Clear Channel
Communications<F*> 21,000 1,575,000
Computer Assoc. Intl. 36,500 1,868,326
Compuware Corp.<F*> 22,300 231,363
Convergys Corp.<F*> 9,500 492,813
Dell Computers<F*> 159,000 7,840,608
Deluxe Corp. 4,500 106,029
Equifax Inc. 8,700 228,375
First Data Corp. 26,000 1,290,250
IMS Health Inc. 19,000 342,000
Manor Care Inc.<F*> 6,300 44,100
Microsoft Corp.<F*> 322,600 25,808,000
Millipore Corp. 2,800 211,050
National Service Inds. Inc. 2,500 48,750
Novell Inc.<F*> 20,200 186,850
Peoplesoft Inc.<F*> 16,600 278,050
Quintiles Transnational
Corp.<F*> 7,100 100,288
Sapient Corp.<F*> 3,600 384,973
Siebel Systems Inc.<F*> 12,000 1,962,744
Sun Microsystems Inc.<F*> 97,900 8,902,732
Tellabs<F*> 24,900 1,704,080
Thermo Electron<F*> 9,800 206,408
3Com Corp. 21,200 1,221,650
Young & Rubicam Inc. 4,300 245,904
------------
87,099,109
------------
Chemicals (1.74%)
Air Products & Chemicals Inc. 14,200 437,530
Dow Chemical Co. 40,911 1,234,980
E I Du Pont De Nemours & Co. 64,717 2,831,369
Eastman Chemical 4,875 232,781
Ecolab, Inc. 8,000 312,496
Great Lakes Chemical 3,300 103,950
Hercules Inc. 6,500 91,403
Honeywell International Inc. 49,025 1,651,505
Mallinckrodt Inc. 4,200 182,435
Owens Corning 3,300 30,525
PPG Industries Inc. 10,800 478,570
Pharmacia Corp. 77,529 4,007,241
Rohm & Haas Co. 13,571 468,200
Sigma-Aldrich 6,200 181,350
Teredyne<F*> 10,600 779,100
Union Carbide Corp. 8,300 410,851
------------
13,434,286
------------
(continued)
5
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Commercial Banking (5.62%)
Amsouth Bancorporation 24,150 $ 380,363
BB&T Corp. 21,500 513,313
Bank of America Corp. 105,845 4,551,335
Bank of New York 45,600 2,120,400
Banc One Corp. 71,013 1,886,247
Chase Manhattan Corp. (new) 76,636 3,530,007
Citigroup Inc. 208,970 12,590,443
Comerica Inc. 9,700 435,288
Fifth Third Banc 19,100 1,208,075
First Union Corp. 61,192 1,518,296
Firstar Corporation 60,746 1,279,432
Huntington Bancshares 14,142 223,613
Keycorp 27,700 488,213
Mellon Financial Corp. 31,500 1,147,766
J P Morgan & Co. Inc. 10,800 1,189,350
National City Corp. 38,200 651,768
Northern Trust Corp. 13,800 897,856
Old Kent Financial Corp. 8,200 219,350
PNC Financial Corp. 18,200 853,125
Regions Financial Corp. 13,500 268,313
Southtrust Corp. 10,400 235,300
Summit Bancorporation 10,800 265,950
Suntrust Banks Inc. 19,800 904,603
Synovus Financial Corp. 17,300 304,913
US Bancorp 46,619 897,416
Union Planters Corp. 8,700 243,052
Wachovia Corp. 12,600 683,558
Wells Fargo & Co. 102,330 3,965,288
------------
43,452,617
------------
Construction (1.07%)
Centex Corp. 3,600 84,600
Fluor Corp. 4,700 148,638
Home Depot Inc. 142,700 7,126,010
Huttig Building Products
Inc.<F*> 1 4
Masco Corp. 27,700 500,317
Pulte Home Corp. 2,600 56,225
Stanley Works 5,500 130,625
Vulcan Materials Co. 6,200 264,659
------------
8,311,078
------------
Consumer Durables (0.16%)
American Power
Conversion<F*> 11,900 485,663
Black & Decker Corp. 5,400 212,285
Maytag Corp. 5,200 191,750
Snap-On Inc. 3,600 95,850
Whirlpool Corp. 4,600 214,475
------------
1,200,023
------------
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Containers (0.08%)
Crown Cork & Seal 8,000 $ 120,000
Newell Rubbermaid Inc. 17,421 448,591
Pactiv Corp.<F*> 10,600 83,475
------------
652,066
------------
Domestic Oil (0.64%)
Amerada Hess Corp. 5,600 345,800
Apache 7,100 417,565
Ashland Inc. 4,400 154,273
Conoco Inc. - Class B 38,800 953,006
Kerr-McGee Corp. 5,967 351,677
Phillips Petroleum Co. 15,700 795,786
Rowan Companies Inc.<F*> 5,700 173,138
Sunoco Inc. 5,600 164,847
Tosco Corp. 8,900 251,976
USX-Marathon Group 19,259 482,669
Union Pacific Resources Group 15,574 342,628
Unocal Corp. 15,000 496,875
------------
4,930,240
------------
Drugs & Medicines (8.61%)
Abbott Laboratories 95,300 4,246,759
Allergan Inc. 8,200 610,900
Alza Corp.<F*> 6,300 372,488
American Home Products Corp. 80,900 4,752,875
Bard C R Inc. 3,200 154,000
Bausch & Lomb Inc. 3,300 255,338
Baxter International 18,000 1,265,616
Becton Dickinson & Co. 15,600 447,517
Biogen Inc.<F*> 9,300 599,850
Boston Scientific Corp.<F*> 25,700 563,781
Guidant Corp. 19,100 945,450
The Healthcare Co. 34,886 1,059,662
Healthsouth Corp.<F*> 23,900 171,769
Humana Inc.<F*> 10,300 50,213
Johnson & Johnson 86,300 8,791,813
Eli Lilly & Co. 67,600 6,751,550
Merck & Co. Inc. 144,850 11,099,130
Pfizer Inc. 386,200 18,537,600
St. Jude Medical<F*> 5,200 238,550
Schering-Plough Corp. 91,000 4,595,500
Tenet Healthcare 19,300 521,100
Watson Pharmaceuticals
Inc.<F*> 5,900 317,125
Wellpoint Health Networks<F*> 4,000 289,748
------------
66,638,334
------------
Electronics (12.43%)
ADC Telecommunications<F*> 18,600 1,560,075
Advanced Micro Devices
Inc.<F*> 9,100 702,975
(continued)
6
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Electronics (continued)
Agilent Technologies Inc.<F*> 28,023 $ 2,066,696
Altera Corp.<F*> 12,400 1,264,019
Andrew Corp.<F*> 5,000 167,810
Applied Materials Inc.<F*> 47,500 4,304,688
Citrix Systems Inc.<F*> 11,100 210,201
Conexant Systems Inc.<F*> 13,300 646,713
Emerson Electric Co. 26,700 1,612,013
Hewlett-Packard Co. 62,300 7,779,713
Intel Corp. 207,100 27,686,578
KLA-Tencor Corp.<F*> 11,400 667,607
LSI Logic Corp.<F*> 18,400 995,900
Maxim Integrated Products,
Inc.<F*> 17,200 1,168,516
Medtronic Inc. 74,000 3,686,088
Micron Technology Inc.<F*> 33,500 2,950,077
MIPS Technologies Inc.-
Class B 1,579 60,823
Molex Inc. 12,125 583,516
Motorola Inc. 131,806 3,830,546
Network Appliance Inc.<F*> 18,900 1,521,450
Nortel Networks Corp. Holding
Co. 178,980 12,215,385
PE Corp. - PE Biosystems
Group 12,800 843,200
Parametric Technology
Corp.<F*> 17,000 187,000
Perkinelmer Inc. 3,000 198,375
Qualcomm Inc.<F*> 45,800 2,748,000
Raytheon Co. 20,900 402,325
Seagate Technology Inc. 14,100 775,500
Silicon Graphics<F*> 11,400 42,750
Solectron Corp.<F*> 36,700 1,536,813
Texas Instruments Inc. 100,800 6,923,650
Thomas & Betts Corp. 3,600 68,850
Williams Companies Inc. 26,900 1,121,380
Xilinx<F*> 19,900 1,642,980
Yahoo! Inc.<F*> 32,700 4,050,713
------------
96,222,925
------------
Energy & Utilities (1.24%)
American Electric Power Co.
Inc. 19,860 588,353
Burlington Resources 13,492 516,069
CMS Energy Corp. 7,100 157,088
Coastal Corp. 13,300 809,638
Columbia Energy Group 5,050 331,406
Consolidated Edison Inc. 13,700 405,863
Constellation Energy Group
Inc. 9,300 302,827
Dominion Resources 14,739 631,935
Edison International 21,500 440,750
Enron Corp. 44,400 2,863,800
Entergy Corp. 15,300 415,961
FPL Group Inc. 11,100 549,450
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Energy & Utilities (continued)
New Century Energies Inc. 7,100 $ 213,000
Niagara Mohawk Holdings
Inc.<F*> 10,900 151,910
Northern States Power Co.
(Minn.) 9,500 191,777
Reliant Energy Inc. 18,318 541,517
TXU Corp. 17,105 504,598
------------
9,615,942
------------
Energy Raw Materials (0.66%)
Baker Hughes Inc. 20,410 653,120
Halliburton Co. 27,400 1,292,924
McDermott Intl. 3,600 31,723
Occidental Petroleum Corp. 22,700 478,107
Oneok 1,900 49,280
Peoples Energy Corp. 2,200 71,225
Schlumberger 34,100 2,544,713
------------
5,121,092
------------
Finance (Non-Banking) (2.90%)
Associates First Capital
Corp. 45,106 1,006,405
Bear Stearns Companies Inc. 7,020 292,208
H & R Block Inc. 6,100 197,488
Capital One Financial Corp. 12,200 544,425
Chubb Corp. 10,900 670,350
Cincinnati Financial Corp. 10,200 320,657
Countrywide Credit 7,000 212,184
Fleet Boston Financial Corp. 56,748 1,929,432
Franklin Resources Inc. 15,400 467,775
Golden West Financial 10,000 408,120
Lehman Brothers Holding Inc. 7,500 709,215
MBIA Inc. 6,200 298,759
MBNA Corp. 49,625 1,346,078
Morgan Stanley, Dean Witter &
Co. 70,588 5,876,451
Paine Webber Group Inc. 8,800 400,400
Paychex Inc. 23,000 966,000
T. Rowe Price Assoc. 7,400 314,500
Progressive Corp. 4,600 340,400
Providian Financial Corp. 8,850 796,500
SLM Holding Corp. 9,840 368,380
Safeco Corp. 8,000 159,000
Schwab (Charles) Corp. 82,125 2,761,453
State Street Corp. 9,900 1,050,014
Washington Mutual Inc. 35,769 1,032,830
------------
22,469,024
------------
Food & Agriculture (3.00%)
Archer-Daniels-Midland Co. 37,580 368,735
Bestfoods 17,300 1,198,025
(continued)
7
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Food & Agriculture (continued)
Campbell Soup Co. 26,400 $ 768,900
Coca-Cola Company 153,100 8,793,605
Coca-Cola Enterprises 26,300 429,006
Conagra Inc. 30,500 581,391
Adolph Coors 2,300 139,150
Darden Restaurants 7,900 128,375
General Mills Inc. 18,700 715,275
H J Heinz Co. 21,950 960,313
Hershey Foods Corp. 8,600 417,100
Kellogg Co. 25,100 746,725
Pepsico Inc. 90,200 4,008,217
Quaker Oats Co. 8,300 623,538
Ralston Purina Co. 18,700 372,822
Sara Lee Corp. 56,300 1,087,266
Starbucks<F*> 11,400 435,330
Sysco Corp. 20,400 859,350
Wm. Wrigley Jr. Co. 7,200 577,346
------------
23,210,469
------------
Gold (0.10%)
Barrick Gold Corp. 24,400 443,763
Homestake Mining Co. 16,100 110,688
Placer Dome Inc. 20,100 192,196
------------
746,647
------------
Government & State Agency (0.65%)
Federal Home Loan Mortgage
Corp. 43,100 1,745,550
Federal National Mortgage
Association 63,500 3,313,875
------------
5,059,425
------------
Industrial Miscellaneous (3.91%)
Allied Waste Industries
Inc.<F*> 11,700 117,000
America Online Inc.<F*> 141,400 7,458,850
American Greetings 3,900 74,100
Amgen<F*> 63,300 4,446,825
Anadarko Petroleum Co. 7,900 389,565
Armstrong Holdings Inc. 2,400 36,749
Autodesk Inc. 3,800 131,811
Avery Dennison Corp. 7,000 469,875
Ball Corp. 1,900 61,155
Biomet Inc. 7,000 269,059
Briggs & Stratton 1,400 47,950
Circuit City Stores Inc. 12,600 418,156
Computer Sciences<F*> 10,400 776,745
Comverse Technology Inc. 9,500 883,500
Cooper Tire & Rubber 4,700 52,288
Corning Inc. 17,100 4,614,863
Cummins Engine 2,500 68,125
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
Industrial Miscellaneous (continued)
<S> <C> <C>
Danaher Corp. 8,800 $ 435,046
Dun & Bradstreet Corp. (new) 9,975 285,534
Electronic Data Systems Corp. 29,200 1,204,500
Engelhard Corp. 7,750 132,231
Freeport McMoran<F*> 10,100 93,425
W.R. Grace & Co.<F*> 4,400 53,350
Harrahs Entertainment,
Inc.<F*> 7,900 165,402
Ikon Office Solutions Inc. 9,200 35,650
Leggett & Platt 12,100 199,650
Linear Technology Corp. 19,300 1,233,984
Loews Corp. 6,600 396,000
Lowes Companies Inc. 23,700 973,169
Mattel Inc. 25,987 342,691
McKesson HBOC Inc. 17,414 364,597
Mead Corp. 6,300 159,075
NCR Corp. (new)<F*> 6,000 233,622
National Semiconductor
Corp.<F*> 10,600 601,550
Northrop Corp. 4,300 284,875
Praxair 9,800 366,883
Rite Aid Corp. 16,000 104,992
Ryder System Inc. 3,600 68,173
Sealed Air Corp.<F*> 5,233 274,078
Sherwin-Williams 10,200 216,107
Tektronix Inc. 2,900 214,600
Timken Co. 3,800 70,775
Waste Management Inc. 38,335 728,363
Transocean Sedco Forex 12,944 691,689
------------
30,246,627
------------
Insurance (2.58%)
Aflac Inc. 16,500 757,961
Aetna Inc. 8,922 572,676
Allstate Insurance 49,896 1,110,186
American International Group
Inc. 95,988 11,278,590
AON Corp. 15,875 493,109
Cigna Corp. 10,500 981,750
Jefferson Pilot Corp. 6,550 369,662
Kaufman & Broad Homebuilders 2,900 57,455
Lincoln National Corp. 12,100 437,113
MGIC Investment Corp. 6,600 300,300
Marsh & McLennan Cos. Inc. 16,550 1,728,432
St. Paul Companies Inc. 14,100 481,163
Torchmark Corp. 8,100 199,965
Unitedhealth Group Inc. 10,500 900,374
Unumprovident Corp. 14,800 296,918
------------
19,965,654
------------
(continued)
8
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
International Oil (3.91%)
Chevron Corp. 40,700 $ 3,451,848
Exxon Mobile Corp. 214,040 16,802,140
Royal Dutch Petroleum Co. 132,900 8,181,590
Texaco Inc. 34,300 1,826,475
------------
30,262,053
------------
Liquor (0.51%)
Anheuser-Busch Companies Inc. 28,850 2,154,720
Brown Forman Corp. 'B' 4,300 231,125
Seagram Co. Ltd. 26,900 1,560,200
------------
3,946,045
------------
Media (2.66%)
Comcast Corp. 57,400 2,324,700
R R Donnelley & Sons Co. 7,800 175,984
Dow Jones & Co. 5,600 410,200
Gannett Co. Inc. 17,300 1,034,748
Harcourt General Inc. 4,400 239,250
Interpublic Group Co. 17,400 748,200
Knight Ridder Inc. 4,800 255,298
McGraw-Hill Inc. 12,200 658,800
Meredith Corp. 3,200 108,000
New York Times Co. 10,600 418,700
Omnicom Group 11,000 979,682
Time Warner Inc. 79,760 6,061,760
Tribune Co. 19,700 689,500
Viacom Class B<F*> 94,488 6,442,852
------------
20,547,674
------------
Miscellaneous &
Conglomerates (0.48%)
Hartford Financial Services
Group 13,700 766,337
ITT Industries Inc. 5,400 164,025
Marriott International-Cl A 15,450 557,158
Minnesota Mining &
Manufacturing 24,750 2,041,875
Pinnacle West Capital 5,200 176,150
------------
3,705,545
------------
Miscellaneous Finance (1.18%)
American Express Co. 83,200 4,336,800
American General Corp. 15,326 934,886
Household International Inc. 29,153 1,211,657
Merrill Lynch & Co. Inc. 23,000 2,645,000
------------
9,128,343
------------
Motor Vehicles (0.90%)
Dana Corp. 10,187 215,832
Eaton Corp. 4,600 308,200
Ford Motor Co. 74,900 3,220,700
General Motors 34,350 1,994,430
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Motor Vehicles (continued)
Genuine Parts Co. 10,925 $ 218,500
Harley Davidson Inc. 18,700 719,950
TRW Inc. 7,500 325,312
------------
7,002,924
------------
Non-Durables & Entertainment
(0.17%)
Brunswick Corp. 5,600 92,747
Costco Wholesale Corp.<F*> 27,506 907,698
Hasbro Inc. 10,850 163,423
Wendy's International Inc. 7,375 131,363
------------
1,295,231
------------
Non-Ferrous Metals (0.33%)
Alcan Aluminum Limited 13,525 419,275
Alcoa Inc. 53,904 1,563,216
Inco Ltd.<F*> 11,800 181,425
Newmont Mining Corp. 10,377 224,403
Phelps Dodge Corp. 5,017 186,567
------------
2,574,886
------------
Optical Photographic
Equipment (0.16%)
Eastman Kodak Co. 19,600 1,166,200
Polaroid Corp. 2,745 49,580
------------
1,215,780
------------
Paper & Forest Products (0.63%)
Bemis Co. Inc. 3,200 107,600
Boise Cascade Corp. 3,466 89,683
Fort James Corp. 13,400 309,875
Georgia-Pacific Corp. 10,600 278,250
International Paper Co. 29,845 889,763
Kimberly-Clark Corp. 34,472 1,977,831
Louisiana Pacific Corp. 6,500 70,688
Potlatch Corp. 1,800 59,625
Temple Inland Inc. 3,500 147,000
Westvaco Corp. 6,225 154,455
Weyerhaeuser Co. 14,550 625,650
Willamette Industries 6,900 188,024
------------
4,898,444
------------
Producer Goods (5.52%)
Caterpillar Inc. 22,000 745,250
Conseco Inc. 20,223 197,174
Cooper Industries Inc. 5,800 188,860
Deere & Co. 14,500 536,500
Delphi Automotive Systems 34,983 509,422
Dover Corp. 12,600 511,081
FMC Corp.<F*> 1,900 110,200
General Electric Corp. 610,000 32,330,000
W W Grainger Inc. 5,806 178,894
(continued)
9
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Producer Goods (continued)
Illinois Tool Works Inc. 18,600 $ 1,060,200
Ingersoll-Rand Co. 10,100 406,525
Johnson Controls Inc. 5,300 271,954
Navistar Intl. Corp.<F*> 3,900 121,142
Owens-Illinois Inc.<F*> 9,300 108,689
Pall Corp. 7,600 140,600
Parker Hannifin Corp. 6,925 237,181
Tyco International Ltd. 104,853 4,967,455
Visteon Corp.<F*> 9,806 118,909
------------
42,740,036
------------
Railroads & Shipping (0.32%)
Burlington Northern Santa Fe 28,324 649,668
CSX Corp. 13,500 286,025
Kansas City Southern Inds. 6,900 611,940
Norfolk Southern Corp. 23,650 351,793
Union Pacific Corp. 15,400 572,680
------------
2,472,106
------------
Retail (4.78%)
Albertsons Inc. 26,200 871,150
Autozone Inc.<F*> 8,500 187,000
Bed Bath & Beyond Inc.<F*> 8,700 315,375
Best Buy Inc.<F*> 12,700 803,275
Cardinal Health Inc. 17,400 1,287,600
Consolidated Stores Corp.<F*> 6,825 81,900
Dillard's Inc. 6,500 79,625
Dollar General 20,422 398,229
Federated Department
Stores<F*> 13,000 438,750
Gap Inc. 52,687 1,646,469
Great Atlantic & Pacific Tea
Co. 2,300 38,238
K Mart Corp.<F*> 30,100 205,041
Kohl's Corp. (Wisconsin)<F*> 20,200 1,123,625
Kroger Co.<F*> 51,700 1,140,605
Limited Inc. 26,600 575,225
Longs Drug Store 2,400 52,200
May Department Stores Co. 20,576 493,824
McDonald's Corp. 83,900 2,763,414
Nordstrom Inc. 8,300 200,238
Office Depot Inc.<F*> 20,400 127,500
J C Penney Co Inc. 16,100 296,836
Radio Shack Corp. 12,000 568,500
Safeway Inc.<F*> 31,500 1,421,438
Sears Roebuck & Co. 23,400 763,425
Staples Inc.<F*> 29,100 447,413
Supervalu Inc. 8,600 163,933
TJX Cos. Inc. 19,200 360,000
Target Corp. 27,200 1,577,600
Toys 'R' Us<F*> 14,812 215,692
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Retail (continued)
Tricon Global Restaurants<F*> 9,360 $ 264,420
Tupperware Inc. 3,500 77,000
Wal-Mart Stores Inc. 276,000 15,904,500
Walgreen Co. 62,300 2,005,250
Winn-Dixie Stores Inc. 9,000 128,807
------------
37,024,097
------------
Soaps & Cosmetics (2.52%)
Alberto Culver Co. 'B' 3,400 103,911
Avon Products Inc. 15,000 667,500
Bristol-Myers Squibb Co. 122,960 7,162,420
Clorox Co. 14,700 658,736
Colgate-Palmolive Co. 36,100 2,161,488
Gillette Co. 66,500 2,323,311
International Flavors &
Fragrances 6,500 196,216
Procter & Gamble Co. 81,600 4,671,600
Unilever NV 35,471 1,525,252
------------
19,470,434
------------
Steel (0.06%)
Allegheny Technologies Inc. 5,100 91,800
Bethlehem Steel Corp.<F*> 8,100 28,852
Nucor Corp. 5,400 179,210
USX US Steel 5,471 101,553
Worthington Industries, Inc. 5,500 57,750
------------
459,165
------------
Telephone (8.37%)
A T & T Corp. 234,131 7,404,418
Alltel 19,500 1,207,772
Bellsouth Corp. 116,688 4,973,826
Century Tel Inc. 8,600 247,250
GTE Corp. 60,200 3,747,450
Lucent Technologies 197,529 11,703,593
Nextel Communications
Inc.-A<F*> 45,200 2,765,652
SBC Communications Inc. 211,378 9,142,099
Scientific Atlanta 9,800 730,100
Sprint Corp. 54,000 2,754,000
Sprint PCS Group.<F*> 53,400 3,177,300
US West Inc. 31,307 2,684,575
Verizon Communications 96,240 4,890,147
Worldcom Inc.<F*> 175,919 8,070,284
Global Crossing Ltd.<F*> 48,330 1,271,659
------------
64,770,125
------------
Tires Rubber Goods (0.02%)
Goodyear Tire & Rubber Co. 9,672 193,440
------------
(continued)
10
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY S & P 500 INDEX FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Tobacco (0.62%)
Fortune Brands Inc. 10,100 $ 232,926
Nabisco Group Holdings 20,200 523,927
Philip Morris Companies Inc. 146,650 3,895,317
UST Inc. 10,600 155,683
------------
4,807,853
------------
Travel & Recreation (0.80%)
Carnival Corp. 38,200 744,900
Walt Disney Productions 128,300 4,979,580
Hilton Hotels Corp. 22,800 213,750
Sabre Holdings Corp. 8,032 228,912
------------
6,167,142
------------
Trucking & Freight (0.04%)
Eastern Enterprises 1,700 107,100
Paccar Inc. 4,800 190,498
------------
297,598
------------
Utilities Electrical & Gas (1.12%)
AES Corp.<F*> 26,900 1,227,313
Ameren Corp. 8,500 286,875
C P & L Energy Inc. 9,900 316,176
Cinergy Corp. 9,854 250,656
DTE Energy Co. 9,000 275,058
Duke Energy Corp. 22,641 1,276,386
El Paso Energy Corp. 14,200 723,305
Firstenergy Corp. 14,400 336,600
Florida Progress Corp. 6,100 285,938
GPU Inc. 7,600 205,671
Nicor Inc. 2,900 94,613
Peco Energy Co. 11,500 463,588
P G & E Corp. 23,800 586,075
PPL Corp. 8,900 195,239
Public Service Enterprise
Group 13,550 469,169
Sempra Energy 12,622 214,574
Southern Co. 41,700 972,110
Unicom Corp. 13,500 522,275
------------
8,701,621
------------
TOTAL COMMON STOCK (99.34%)
(COST $452,891,056) 768,894,919
------------
<PAGE>
<CAPTION>
--------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
--------------------------------------------------------
<S> <C> <C>
Commercial Paper (0.38%)
Centennial Energy
Holdings, 7.20%, due
07/03/2000 $1,920,000 $ 1,920,000
Centennial Energy
Holdings, 6.96%, due
07/05/2000 1,000,000 999,614
------------
TOTAL SHORT TERM SECURITIES
(0.38%)
(AMORTIZED COST $2,919,614) 2,919,614
------------
TOTAL INVESTMENTS (99.72%)
(AMORTIZED COST
$455,810,669) 771,814,533
Other net assets (0.28%) 2,135,461
------------
TOTAL NET ASSETS (100.00%) $773,949,994
============
<FN>
<F*> Non-income producing securities.
See accompanying notes to financial statements.
</TABLE>
11
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
--------------------------------------------------------------------
MANAGEMENT DISCUSSION
The Federal Reserve has been raising short-term interest rates in
an effort to slow growth and head off higher inflation. At the May
16 Federal Open Market Committee meeting, the Fed raised rates by
0.5%, bringing the Federal Funds rate to 6.5%.
Inflation fears eased late in the second quarter. The Fed abstained
from raising interest rates at its June 28 meeting, but cited
continuing concerns about the potential for inflation. Evidence
suggests that inflation risk is still on the upside as energy
prices may keep the overall Consumer Price Index rising faster than
the core rate this summer. We believe the Fed will retain a bias
toward increasing rates until the economy slows to a more
sustainable level.
--------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
--------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 5.88% 5.61% 5.24% 5.94%
</TABLE>
The fund's performance reflects administrative and management
charges.
Past performance is no assurance of future results.
12
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
<TABLE>
-----------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
June 30, 2000 (unaudited)
ASSETS:
Investments, at market value:
(see accompanying schedules)
Short term securities $244,333,802
------------
Total investments 244,333,802
Cash 1,888
Interest receivable 485,439
------------
Total assets 244,821,129
------------
LIABILITIES:
Payable to Conning Asset Management
Company 27,493
Payable to General American Life
Insurance Company 17,595
------------
Total liabilities 45,088
------------
Total net assets $244,776,041
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 11,726,412
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 20.87
TOTAL AMORTIZED COST OF INVESTMENTS $244,332,086
</TABLE>
<TABLE>
------------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the six months ended June 30, 2000
(unaudited)
INVESTMENT INCOME:
Interest $7,395,865
----------
Total investment income 7,395,865
----------
EXPENSES:
Investment management charge 148,888
Administrative charge 95,287
----------
Total expenses 244,175
----------
Net investment income 7,151,690
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $7,151,690
==========
</TABLE>
<PAGE>
<TABLE>
--------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- ------------
2000<F*> 1999
------------- ------------
<S> <C> <C>
Operations:
Net investment income $ 7,151,690 $ 13,094,883
------------ ------------
Net increase in net assets from operations 7,151,690 13,094,883
Capital share transactions (18,515,254) 7,998,893
------------ ------------
Net increase (decrease) in net assets (11,363,564) 21,093,776
Net assets, beginning of year 256,139,605 235,045,829
------------ ------------
Net assets, end of period $244,776,041 $256,139,605
============ ============
<FN>
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
13
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
-------- -----------------------------------------------------
2000<F*> 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 20.25 $ 19.25 $ 18.23 $ 17.24 $ 16.34
-------- -------- -------- -------- --------
Income from operations:
Net investment income 0.62 1.00 1.02 0.99 0.90
-------- -------- -------- -------- --------
Net asset value, end of period $ 20.87 $ 20.25 $ 19.25 $ 18.23 $ 17.24
======== ======== ======== ======== ========
Total return <F2> 3.07% 5.20% 5.62% 5.71% 5.51%
Net assets, end of period (in thousands) $244,776 $256,140 $235,046 $174,571 $101,426
Ratio of expenses to average net assets <F3> 0.21% 0.21% 0.21% 0.21% 0.21%
Ratio of net investment income to average net
assets <F3> 6.08% 5.08% 5.45% 5.60% 5.37%
Portfolio turnover rate <F4> -- -- -- -- --
<CAPTION>
YEAR ENDED DECEMBER 31
--------------------------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 15.42 $ 14.80 $ 14.36 $ 13.85 $ 13.04
-------- -------- -------- -------- --------
Income from operations:
Net investment income 0.92 0.62 0.44 0.51 0.81
-------- -------- -------- -------- --------
Net asset value, end of year $ 16.34 $ 15.42 $ 14.80 $ 14.36 $ 13.85
======== ======== ======== ======== ========
Total return <F2> 5.96% 4.21% 3.07% 3.71% 6.19%
Net assets, end of year (in thousands) $ 70,574 $ 93,339 $ 84,430 $ 84,880 $ 84,090
Ratio of expenses to average net assets <F3> 0.21% 0.21% 0.21% 0.21% 0.21%
Ratio of net investment income to average net
assets <F3> 5.78% 4.17% 3.06% 3.68% 6.10%
Portfolio turnover rate <F4> -- -- -- -- --
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> A portfolio turnover rate is not calculated for securities on which the
maturity or expiration dates at the time of acquisition were one year or less.
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
14
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
<TABLE>
------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PAR INTEREST MATURITY MARKET
SHORT TERM SECURITIES VALUE RATE (%) DATE VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER
Asset Backed (11.19%)
Kitty Hawk Funding Corp.<F*> $ 1,059,000 6.60 07/10/00 $ 1,057,647
Kitty Hawk Funding Corp.<F*> 2,500,000 6.72 07/17/00 2,493,496
Pooled Accounts Receivable<F*> 5,500,000 6.60 07/25/00 5,477,985
Pooled Accounts Receivable<F*> 4,300,000 6.60 07/10/00 4,294,507
Pooled Accounts Receivable<F*> 1,843,000 6.65 07/25/00 1,835,566
Triple A Funding Corp.<F*> 4,600,000 6.64 07/10/00 4,594,106
Triple A Funding Corp.<F*> 3,170,000 6.68 07/24/00 3,157,777
Triple A Funding Corp.<F*> 4,500,000 6.61 07/24/00 4,482,806
------------
27,393,890
------------
Banking (6.63%)
Moat Funding<F*> 2,425,000 6.60 07/26/00 2,414,868
Moat Funding<F*> 1,900,000 6.61 07/28/00 1,891,357
Zions Bancorporation 5,175,000 6.71 07/14/00 5,164,500
Zions Bancorporation 4,800,000 6.75 07/28/00 4,777,733
Zions Bancorporation 2,000,000 6.80 08/07/00 1,986,933
------------
16,235,391
------------
Bond Insurance (3.35%)
Cooperative Assoc. of Tractor Dealers "A" 7,200,000 6.62 07/05/00 7,197,368
Cooperative Assoc. of Tractor Dealers "A" 1,000,000 6.67 08/15/00 992,117
------------
8,189,485
------------
Business Credit Institutional (4.67%)
Sweetwater Capital Corp.<F*> 1,529,000 6.67 07/31/00 1,521,151
Sweetwater Capital Corp.<F*> 750,000 6.71 09/05/00 740,812
Sweetwater Capital Corp.<F*> 1,277,000 6.67 08/14/00 1,267,079
Sweetwater Capital Corp.<F*> 3,745,000 6.63 07/26/00 3,729,280
Sweetwater Capital Corp.<F*> 3,041,000 6.67 08/02/00 3,024,275
Sweetwater Capital Corp.<F*> 1,162,000 6.67 08/11/00 1,153,692
------------
11,436,289
------------
Financial (3.46%)
Countrywide Home Loans 8,475,000 6.61 07/14/00 8,457,986
------------
Electronic (0.82%)
Hitachi Credit America Corp. 2,000,000 6.66 07/14/00 1,995,948
Hitachi Credit America Corp. 7,000,000 6.62 07/17/00 6,982,088
------------
8,978,036
------------
Insurance (2.33%)
Allianz of America Finance 3,625,000 6.60 07/18/00 3,615,107
Allianz of America Finance 2,100,000 6.64 07/18/00 2,094,242
------------
5,709,349
------------
Machinery (4.56%)
Dealers Capital Access Trust 2,800,000 6.75 09/05/00 2,765,700
Dealers Capital Access Trust 5,000,000 6.30 07/03/00 5,000,000
Dealers Capital Access Trust 1,000,000 6.67 07/18/00 997,250
Grainger WW Inc. 2,400,000 6.57 07/24/00 2,390,858
------------
11,153,808
------------
(continued)
15
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
-----------------------------------------------------------------------------------------------------------------------
PAR INTEREST MATURITY MARKET
SHORT TERM SECURITIES VALUE RATE (%) DATE VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Miscellaneous Business Credit (8.70%)
Barton Capital Corp.<F*> $ 2,038,000 6.68 07/20/00 $ 2,031,639
Barton Capital Corp.<F*> 5,000,000 6.61 07/20/00 4,984,511
Barton Capital Corp.<F*> 2,676,000 6.68 07/24/00 2,665,682
Windmill Funding Corp.<F*> 1,000,000 6.68 07/19/00 997,062
Windmill Funding Corp.<F*> 1,175,000 6.65 08/11/00 1,166,624
Windmill Funding Corp.<F*> 3,500,000 6.64 08/03/00 3,480,199
Windmill Funding Corp.<F*> 6,000,000 6.62 07/26/00 5,974,777
------------
21,300,494
------------
Miscellaneous Personal Credit (15.83%)
Clipper Receivables<F*> 7,500,000 6.64 08/14/00 7,441,730
Enterprise Funding Corp.<F*> 2,600,000 6.60 07/24/00 2,590,081
Enterprise Funding Corp.<F*> 3,275,000 6.63 08/04/00 3,255,903
Enterprise Funding Corp.<F*> 1,799,000 6.67 07/18/00 1,794,053
Market Street Funding<F*> 3,246,000 6.69 07/21/00 3,235,256
Old Line Funding<F*> 5,000,000 6.59 07/20/00 4,984,558
Old Line Funding<F*> 1,654,000 6.60 07/07/00 1,652,792
Old Line Funding<F*> 909,000 6.61 07/19/00 906,346
Old Line Funding<F*> 3,795,000 6.65 08/01/00 3,774,854
Thunder Bay Funding Co.<F*> 1,500,000 6.65 07/12/00 1,497,529
Thunder Bay Funding Co.<F*> 3,000,000 6.59 07/11/00 2,995,633
Thunder Bay Funding Co.<F*> 4,500,000 6.59 07/10/00 4,494,269
Yorkshire Building Society<F*> 129,000 6.95 08/23/00 127,785
------------
38,750,789
------------
Mortgage Banking (2.03%)
Cooper River Funding 5,000,000 6.64 07/27/00 4,978,067
------------
Oil (0.69%)
Explorer Pipeline Co.<F*> 1,700,000 6.62 07/14/00 1,696,587
------------
Personal Credit Institutional (5.29%)
Delaware Funding Corp.<F*> 1,169,000 6.67 07/21/00 1,165,142
Seven Hills Funding Corp.<F*> 2,100,000 6.70 07/28/00 2,090,302
Seven Hills Funding Corp.<F*> 2,000,000 6.69 07/28/00 1,990,764
Seven Hills Funding Corp.<F*> 7,715,000 7.31 07/07/00 7,708,742
------------
12,954,950
------------
Pharmaceutical (7.77%)
Allergan Inc. 870,000 6.71 08/04/00 864,857
Allergan Inc. 4,200,000 6.64 07/19/00 4,187,680
Edison Asset Securitization<F*> 7,000,000 6.68 08/03/00 6,960,217
------------
12,012,754
------------
Telecom (1.10%)
GTE Corp.<F*> 2,700,000 6.66 07/11/00 2,696,040
------------
Utilities (10.16%)
Centennial Energy Holdings<F*> 4,525,000 6.70 07/11/00 4,518,293
Centennial Energy Holdings<F*> 4,800,000 6.62 07/07/00 4,796,491
Centennial Energy Holdings<F*> 3,000,000 6.71 07/21/00 2,989,995
Progress Capital Holdings, Inc.<F*> 4,000,000 6.60 07/07/00 3,997,080
(continued)
16
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
-----------------------------------------------------------------------------------------------------------------------
PAR INTEREST MATURITY MARKET
SHORT TERM SECURITIES VALUE RATE (%) DATE VALUE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities (continued)
Progress Capital Holdings, Inc.<F*> $ 8,600,000 6.61 07/11/00 $ 8,587,445
------------
24,889,304
------------
TOTAL COMMERCIAL PAPER (88.58%) (AMORTIZED COST
$216,835,640) 216,833,219
------------
FLOATING RATE NOTES
Racers Trust - Zurich Capital FLT 8,500,000 07/15/00 8,501,573
GTE Corp. FLT 9,000,000 07/11/00 8,999,010
------------
TOTAL FLOATING RATE NOTES (7.15%) (AMORTIZED COST
$17,496,446) 17,500,583
------------
TIME DEPOSITS
Banco Espirito Santo Euro 3,000,000 5.72 07/19/00 3,000,000
Banco Espirito Santo Euro 5,000,000 5.72 01/26/01 5,000,000
Banco Espirito Santo Euro 2,000,000 7.00 11/27/00 2,000,000
------------
TOTAL TIME DEPOSITS (4.09%) (AMORTIZED COST
$10,000,000) 10,000,000
------------
TOTAL INVESTMENTS (99.82%) (AMORTIZED COST
$244,332,086) 244,333,802
Other net assets (0.18%) 442,239
------------
TOTAL NET ASSETS (100.00%) $244,776,041
============
<FN>
<F*> Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other "accredited
investors". This security has been determined to be liquid under guidelines
established by the board of directors.
</TABLE>
See accompanying notes to the financial statements.
17
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
--------------------------------------------------------------------
MANAGEMENT DISCUSSION
Rates remained relatively stable over the second quarter; a rally
in June erased earlier losses and produced strong returns in all
maturities for the month. For the quarter, treasury bonds again
outperformed corporate bonds. Long duration industrial bonds, led
by the energy sector, were the best performers in the corporate
market, while the financial sector was the worst performing.
In mid-May, the Federal Open Market Committee (FOMC) raised the
Federal Funds rate by another 0.5% to 6.5%, and by late May, there
was mounting evidence of a slowdown in the economy. Investors
started to believe that the Fed is winning its war against
inflation and that any future rate hikes may be more moderate than
initially perceived. However, further rate hikes are not out of the
question, as the FOMC moves toward its goal of moderating Gross
Domestic Product growth to a rate of 3.0%.
--------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
--------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 4.05% 5.70% 7.24% 7.61%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
18
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
<TABLE>
--------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
June 30, 2000 (unaudited)
ASSETS:
Investments, at market value:
(see accompanying schedules)
Bonds $100,232,651
Short term securities 865,000
------------
Total investments 101,097,651
Cash (26,466)
Interest receivable 1,783,213
------------
Total assets 102,854,398
------------
LIABILITIES:
Payable to Conning Asset Management
Company 22,235
Payable to General American Life
Insurance Company 4,447
------------
Total liabilities 26,682
------------
Total net assets $102,827,716
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 4,034,993
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 25.48
TOTAL AMORTIZED COST OF INVESTMENTS $102,887,254
</TABLE>
<TABLE>
--------------------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the six months ended June 30, 2000
(unaudited)
INVESTMENT INCOME:
Interest $2,478,024
----------
Total investment income 2,478,024
----------
EXPENSES:
Investment management charge 96,625
Administrative charge 19,325
----------
Total expenses 115,950
----------
Net investment income 2,362,074
----------
NET REALIZED LOSS ON INVESTMENTS:
Net realized loss on investments (448,754)
----------
NET UNREALIZED GAIN ON INVESTMENTS:
Net unrealized gain from investments 1,650,132
----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $3,563,452
==========
</TABLE>
<PAGE>
<TABLE>
--------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- -----------
2000<F*> 1999
------------- -----------
<S> <C> <C>
Operations:
Net investment income $ 2,362,074 $ 4,132,664
Net realized loss on investments (448,754) (230,745)
Net unrealized gain (loss) on investments 1,650,132 (6,053,536)
------------ -----------
Net increase (decrease) in net assets from
operations 3,563,452 (2,151,617)
Capital share transactions 28,223,235 4,015,548
------------ -----------
Net increase in net assets 31,786,687 1,863,931
Net assets, beginning of year 71,041,029 69,177,098
------------ -----------
Net assets, end of year $102,827,716 $71,041,029
============ ===========
<FN>
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
19
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
<TABLE>
---------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
-------- -------------------------------------------------
2000<F*> 1999 1998 1997 1996
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 24.46 $ 25.19 $ 23.19 $ 21.21 $ 20.59
-------- ------- ------- ------- -------
Income from operations:
Net investment income 0.77 1.42 1.40 1.39 1.29
Net realized and unrealized gain (loss) on
investments 0.25 (2.15) 0.60 0.59 (0.67)
-------- ------- ------- ------- -------
Net increase (decrease) in asset value per share 1.02 (0.73) 2.00 1.98 0.62
-------- ------- ------- ------- -------
Net asset value, end of year $ 25.48 $ 24.46 $ 25.19 $ 23.19 $ 21.21
======== ======= ======= ======= =======
Total return <F2> 4.17% (2.88%) 8.61% 9.34% 3.02%
Net assets, end of period (in thousands) $102,828 $71,041 $69,177 $48,330 $38,015
Ratio of expenses to average net assets <F3> 0.30% 0.30% 0.30% 0.30% 0.30%
Ratio of net investment income to average net
assets <F3> 6.11% 5.75% 5.80% 6.25% 6.26%
Portfolio turnover rate 10.14% 28.86% 54.00% 47.40% 44.28%
<CAPTION>
YEAR ENDED DECEMBER 31
----------------------------------------------------------------
1995 1994 1993 1992 1991
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 17.30 $ 18.03 $ 16.33 $ 15.32 $ 13.44
-------- ------- ------- ------- -------
Income from operations:
Net investment income 1.25 1.06 1.07 1.09 1.08
Net realized and unrealized gain (loss) on
investments 2.04 (1.79) 0.63 (0.08) 0.80
-------- ------- ------- ------- -------
Net increase (decrease) in asset value per share 3.29 (0.73) 1.70 1.01 1.88
-------- ------- ------- ------- -------
Net asset value, end of year $ 20.59 $ 17.30 $ 18.03 $ 16.33 $ 15.32
======== ======= ======= ======= =======
Total return <F2> 19.02% (4.04%) 10.39% 6.57% 14.00%
Net assets, end of year (in thousands) $ 39,316 $26,458 $47,636 $20,217 $14,438
Ratio of expenses to average net assets <F3><F**> 0.30% 0.30% 0.30% 0.39% 0.42%
Ratio of net investment income to average net
assets <F3> 6.43% 6.19% 6.11% 6.89% 7.63%
Portfolio turnover rate 35.35% 46.42% 8.80% 43.50% 2.23%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F*> Unaudited
<F**> Name and investment objective changed from Intermediate Bond Fund on
October 1, 1992. The Investment advisor charges changed from .375 percent to
.250 percent of the average daily value of the net assets on October 1, 1992.
The objective of the Bond Index Fund is to provide a rate of return that
reflects the performance of the publicly traded bond market as a whole.
</TABLE>
See accompanying notes to the financial statements.
20
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
<TABLE>
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
-------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS
Aerospace & Military Technology (0.48%)
Raytheon Co., 6.45%, due 08/15/2002 $ 500,000 $ 487,130
------------
Business Machines (0.94%)
Pitney Bowes Credit Corp., 5.65%, due 01/15/2003 1,000,000 965,830
------------
Commercial Banking (7.15%)
ABN AMRO Bank-NY, 7.125%, due 10/15/2093 500,000 419,555
Chase Manhattan Corp., 7.0%, due 11/15/2009 1,000,000 949,280
First National Bank Omaha, 7.32%, due 12/01/2010 1,500,000 1,471,950
HSBC Holding PLC, 7.5%, due 07/15/2009 500,000 490,235
Inter-American Development Bank, 5.375%, due 11/18/2008 1,700,000 1,516,468
NationsBank Corp., 7.75%, due 08/15/2015 1,100,000 1,071,114
Sanwa Finance Aruba, 8.35%, due 07/15/2009 500,000 497,780
Wells Fargo Capital, 7.95%, due 12/01/2026 1,000,000 938,870
------------
7,355,252
------------
Domestic Oil (1.73%)
Burlington Resources, 8.5%, due 10/01/2001 1,000,000 1,011,150
Conoco Inc., 5.9%, due 04/15/2004 800,000 763,944
------------
1,775,094
------------
Finance (Non-Banking) (3.82%)
Associates Corp N American, 5.8%, due 04/20/2004 500,000 468,320
Citigroup Inc., 7.45%, due 06/06/2002 1,000,000 1,002,740
Daimler Chrysler, 7.125%, due 03/01/2002 1,000,000 997,180
Merrill Lynch & Co. Inc., 7.0%, due 03/15/2006 1,500,000 1,462,470
------------
3,930,710
------------
Food & Agriculture (0.89%)
Coca Cola Enterprises, 5.75%, due 11/01/2008 500,000 440,460
Diageo Capital PLC, 6.125, due 08/15/2005 500,000 470,995
------------
911,455
------------
Energy Raw Materials (1.43%)
Enron Corp., 9.125%, due 04/01/2003 500,000 518,290
Williams Co., 7.625%, due 07/15/2019 1,000,000 955,010
------------
1,473,300
------------
International Oil (0.44%)
Norsk Hydro AS, 6.36%, due 01/15/2009 500,000 455,115
------------
Media (4.24%)
Cox Communications Inc., 7.75%, due 08/15/2006 1,000,000 996,430
Disney (Walt) Co., 5.125%, due 12/15/2003 500,000 471,320
News America Inc., 6.625%, due 01/09/2008 800,000 733,520
Time Warner Inc., 10.15%, due 05/01/2012 1,000,000 1,147,640
Westinghouse Electric, 8.875%, due 06/01/2001 1,000,000 1,011,080
------------
4,359,990
------------
Miscellaneous & Conglomerates (0.96%)
General Electric Capital Corp., 6.65%, due 09/03/2002 1,000,000 990,330
------------
(continued)
21
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
--------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
-------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
Motor Vehicles (0.89%)
Ford Motor Co., 6.625%, due 10/01/2028 $ 500,000 $ 421,025
Ford Motor Credit, 7.75%, due 02/15/2007 500,000 495,730
------------
916,755
------------
Railroads & Shipping (0.91%)
Union Pacific Corp., 6.4%, due 02/01/2006 1,000,000 938,160
------------
Retail (1.79%)
Lowes Companies Inc., 6.875%, due 02/15/2028 1,000,000 846,190
Wal-Mart Stores, 9.10%, due 07/15/2000 1,000,000 999,140
------------
1,845,330
------------
Telephone (2.66%)
Alltell Corp., 6.8%, due 05/01/2029 500,000 415,295
Southwestern Bell, 6.625%, due 07/15/2007 1,000,000 941,110
Sprint Capital Corp., 6.125%, due 11/15/2008 1,000,000 891,370
Telecom de Puerto Rico, 6.15%, due 05/15/2002 500,000 484,455
------------
2,732,230
------------
Travel & Recreation (0.68%)
Hertz Corp., 7.00%, 04/15/2001 700,000 697,291
------------
Utilities, Electrical & Gas (3.30%)
Consolidated Edison Co. of NY Inc., 6.45%, due 12/01/2007 1,000,000 929,100
Hydro Quebec, 8.40%, 01/15/2022 1,000,000 1,076,910
Pacific Gas & Electric, 7.25%, due 08/01/2026 500,000 437,060
Potomac Electric Power, 6.0%, due 04/01/2004 500,000 471,945
Southern California Edison, 6.375% due 01/15/2006 500,000 474,205
------------
3,389,220
------------
TOTAL CORPORATE BONDS (32.31%) (AMORTIZED COST $35,238,442) 33,223,192
------------
AGENCY SECURITIES
Government & State Agency (17.61%)
FHLB, 5.085%, due 10/07/2008 1,000,000 867,970
FHLB, 5.875%, due 09/17/2001 1,000,000 988,280
FHLMC, 7.375%, due 05/15/2003 2,000,000 2,019,140
FHLMC, 5.5%, due 05/15/2002 1,000,000 975,310
FNMA, 6.80%, due 01/10/2003 500,000 497,110
FNMA, 5.875%, due 04/23/2004 1,000,000 953,750
FNMA, 5.750%, due 02/15/2008 1,000,000 920,160
FNMA, 5.625%, due 03/15/2001 2,000,000 1,983,120
FNMA, 5.750%, due 04/15/2003 1,000,000 968,320
FNMA, 5.750%, due 06/15/2005 1,700,000 1,610,750
FNMA, 6.375%, due 06/15/2009 1,500,000 1,425,930
FNMA, 6.210%, due 08/06/2038 625,000 545,700
FNMA, 5.490%, due 08/18/2000 1,000,000 998,910
FNMA, 7.10%, due 10/18/2004 1,000,000 992,660
FNMA Global Benchmark Note, 6.00%, due 05/15/2008 1,000,000 932,570
Italy - Global, 7.25%, due 02/07/2005 500,000 504,020
(continued)
22
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
--------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
-------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
Government & State Agency (continued)
Tennessee Valley Authority, 6.00% due 03/15/2013 $1,000,000 $ 926,250
------------
TOTAL AGENCY SECURITIES (17.61%) (AMORTIZED COST
$17,468,493) 18,109,950
------------
GOVERNMENT SECURITIES
United States Government Securities (45.42%)
US Treasury, 6.0%, due 08/15/2009 1,000,000 992,030
US Treasury Bonds, 10.75%, due 02/15/2003 1,000,000 1,100,310
US Treasury Bonds, 9.875%, due 11/15/2015 500,000 677,970
US Treasury Bonds, 7.25%, due 05/15/2016 1,000,000 1,102,190
US Treasury Bonds, 8.75%, due 05/15/2017 1,000,000 1,259,530
US Treasury Bonds, 8.125%, due 08/15/2019 1,800,000 2,176,038
US Treasury Bonds, 7.875%, due 02/15/2021 1,300,000 1,547,000
US Treasury Bonds, 7.250%, due 08/15/2022 2,500,000 2,812,100
US Treasury Bonds, 6.625%, due 02/15/2027 1,000,000 1,061,720
US Treasury Bonds, 5.50%, due 08/15/2028 1,000,000 917,190
US Treasury Bonds, 5.25%, due 11/15/2028 1,000,000 885,470
US Treasury Notes, 9.25%, due 02/15/2016 500,000 648,830
US Treasury Notes, 6.25%, due 08/15/2023 1,000,000 1,008,120
US Treasury Notes, 6.00%, due 02/15/2026 2,300,000 2,252,206
US Treasury Notes, 6.125%, due 11/15/2027 2,000,000 1,995,620
US Treasury Notes, 6.25%, due 01/31/2002 1,000,000 996,560
US Treasury Notes, 6.50%, due 05/31/2002 1,000,000 1,001,250
US Treasury Notes, 6.25%, due 06/30/2002 1,000,000 997,190
US Treasury Notes, 6.125%, due 08/15/2007 500,000 496,640
US Treasury Notes, 5.750%, due 10/31/2002 1,700,000 1,675,826
US Treasury Notes, 4.75%, due 11/15/2008 1,000,000 908,120
US Treasury Notes, 7.5%, due 11/15/2001 1,250,000 1,265,825
US Treasury Notes, 5.75%, due 08/15/2003 2,300,000 2,260,831
US Treasury Notes, 5.875%, due 02/15/2004 3,500,000 3,451,875
US Treasury Notes, 7.25%, due 05/15/2004 2,000,000 2,062,820
US Treasury Notes, 7.25%, due 08/15/2004 1,000,000 1,033,910
US Treasury Notes, 7.875%, due 11/15/2004 1,000,000 1,058,910
US Treasury Notes, 6.5%, due 05/15/2005 3,000,000 3,032,340
US Treasury Notes, 5.875%, due 11/15/2005 1,000,000 982,810
US Treasury Notes, 5.625%, due 11/30/2000 500,000 498,670
US Treasury Notes, 6.50%, due 05/31/2001 1,000,000 1,000,000
US Treasury Notes, 7.00%, due 07/15/2006 1,000,000 1,036,250
US Treasury Bonds, 6.375%, due 09/30/2001 1,000,000 998,280
US Treasury Bonds, 6.50%, due 10/15/2006 500,000 506,015
US Treasury Bonds, 6.25%, due 10/31/2001 500,000 996,870
------------
46,697,316
------------
Other Government Securities (2.14%)
State of Israel, 6.375%, due 12/15/2005 1,000,000 937,260
Manitoba Province, 9.00%, due 12/15/2000 250,000 252,483
(continued)
23
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY BOND INDEX FUND
--------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
-------------------------------------------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
Other Government Securities (continued)
Manitoba Province, 7.5%, due 02/22/2010 $1,000,000 $ 1,012,450
------------
2,202,193
------------
TOTAL GOVERNMENT SECURITIES (47.56%) (AMORTIZED COST
$49,315,319) 48,899,509
------------
TOTAL BONDS (97.48%) (AMORTIZED COST $102,022,254) 100,232,651
------------
<CAPTION>
-------------------------------------------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
-------------------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper (0.84%)
Centennial Energy Holdings, due 07/03/2000 865,000 865,000
------------
TOTAL SHORT TERM SECURITIES (0.84%) (AMORTIZED COST $865,000) 865,000
------------
TOTAL INVESTMENTS (98.32%) (AMORTIZED COST $102,887,254) 101,097,651
Other net assets (1.68%) 1,730,065
------------
TOTAL NET ASSETS (100.00%) $102,827,716
============
</TABLE>
See accompanying notes to the financial statements.
24
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
--------------------------------------------------------------------
MANAGEMENT DISCUSSION
The Managed Equity Fund's decline of 4.6% gross in the first half
of 2000 slightly trailed the Barra Value Index (down 4.1%) and the
technology-driven S&P 500 (down 0.4%).
The Fund continues to maintain overweighted positions in several
sectors laden with value priced equities including: capital goods,
consumer cyclicals, consumer staples, financials, transportation,
and more recently basic industries. The operating performance of
our holdings in these beaten-down sectors remains extremely sound,
but the stocks are trading at valuation levels not seen in many
years in several cases. Some examples include: Alcoa, Eaton,
Comcast, Conagra, Bank of America, and Honeywell. As the market
increasingly starts to recognize strong earnings power as a
valuation driver, we feel these holdings will begin to produce
favorable returns going forward.
Some notable strong performers for the Fund over the first two
quarters of this year were: Family Dollar (up 12%), Kroger (up
13%), Baker Hughes (up 52%), Lehman Brothers (up 24%), Beckman
Instruments (up 16%), and FPL Group (up 16%). At the end of the
second quarter, the Fund maintained a median price-to-earnings
(P/E) ratio of 15 versus the overall equity market P/E ratio of 25.
The Fund's median market cap was $17 billion and cash reserves were
under 1% of total assets.
--------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
--------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns (13.00%) 13.30% 11.45% 10.31%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
25
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
<TABLE>
--------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
June 30, 2000 (unaudited)
ASSETS:
Investments, at market value:
(see accompanying schedules)
Common stocks $56,945,199
Short term securities 450,000
-----------
Total investments 57,395,199
Cash (10,783)
Dividends receivable 76,483
-----------
Total assets 57,460,899
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 15,195
Payable to General American Life
Insurance Company 5,201
-----------
Total liabilities 20,396
-----------
Total net assets $57,440,503
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 1,643,652
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 34.95
TOTAL AMORTIZED COST OF INVESTMENTS $51,909,998
</TABLE>
<TABLE>
--------------------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the six months ended June 30, 2000
(unaudited)
INVESTMENT INCOME:
Dividends $ 451,793
Interest 47,481
------------
Total investment income 499,274
------------
EXPENSES:
Investment management charge 87,721
Administrative charge 30,047
------------
Total expenses 117,768
------------
Net investment income 381,506
------------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 7,583,723
------------
NET UNREALIZED LOSS ON INVESTMENTS:
Net unrealized loss on investments (10,746,637)
------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (2,781,408)
============
</TABLE>
<PAGE>
<TABLE>
--------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- -----------
2000<F*> 1999
------------- -----------
<S> <C> <C>
Operations:
Net investment income $ 381,506 $ 704,040
Net realized gain on investments 7,583,723 2,449,375
Net unrealized loss on investments (10,746,637) (859,001)
------------ -----------
Net increase (decrease) in net assets from
operations (2,781,408) 2,294,414
Capital share transactions (4,489,838) 613,618
------------ -----------
Net increase (decrease) in net assets (7,271,246) 2,908,032
Net assets, beginning of year 64,711,749 61,803,717
------------ -----------
Net assets, end of period $ 57,440,503 $64,711,749
============ ===========
<FN>
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
26
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
-------- --------------------------------------------------
2000<F*> 1999 1998 1997 1996
-------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 36.71 $ 35.63 $ 31.20 $ 25.31 $ 20.93
-------- -------- ------- ------- -------
Income from operations:
Net investment income 0.23 0.42 0.48 0.63 0.68
Net realized and unrealized gain (loss) on
investments (1.99) 0.66 3.95 5.26 3.70
-------- -------- ------- ------- -------
Net increase (decrease) in asset value per share (1.76) 1.08 4.43 5.89 4.38
-------- -------- ------- ------- -------
Net asset value, end of period $ 34.95 $ 36.71 $ 35.63 $ 31.20 $ 25.31
======== ======== ======= ======= =======
Total return <F2> (4.80%) 3.04% 14.19% 23.29% 20.92%
Net assets, end of period (in thousands) $ 57,441 $ 64,712 $61,804 $59,138 $48,587
Ratio of expenses to average net assets <F3> <F4> 0.39% 0.39% 0.39% 0.41% 0.47%
Ratio of net investment income to average net
assets <F3> 1.27% 1.14% 1.46% 2.19% 2.97%
Portfolio turnover rate 39.94% 16.00% 67.23% 49.43% 36.44%
<CAPTION>
YEAR ENDED DECEMBER 31
-----------------------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 15.69 $ 16.27 $ 14.95 $ 14.02 $ 11.10
-------- -------- ------- ------- -------
Income from operations:
Net investment income 0.58 0.43 0.32 0.35 0.38
Net realized and unrealized gain (loss) on
investments 4.66 (1.01) 1.00 0.58 2.54
-------- -------- ------- ------- -------
Net increase (decrease) in asset value per share 5.24 (0.58) 1.32 0.93 2.92
-------- -------- ------- ------- -------
Net asset value, end of year $ 20.93 $ 15.69 $ 16.27 $ 14.95 $ 14.02
======== ======== ======= ======= =======
Total return <F2> 33.37% (3.58%) 8.87% 6.66% 26.23%
Net assets, end of year (in thousands) $ 40,902 $ 31,487 $32,885 $29,401 $22,006
Ratio of expenses to average net assets <F3> 0.48% 0.49% 0.50% 0.51% 0.53%
Ratio of net investment income to average net
assets <F3> 3.14% 2.65% 2.07% 2.55% 2.99%
Portfolio turnover rate 44.82% 103.93% 25.89% 9.34% 12.15%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> On March 1, 1997, Conning Asset Management Company took over the asset
management of the Managed Equity Fund. The management fee was reduced to from
.50 percent to .40 percent on the first $10 million of assets, from .35 percent
to .30 percent on the balance over $10 million and less than $30 million and
from .30 percent to .25 percent on the balance in excess of $30 million.
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
27
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
<TABLE>
---------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
--------------------------------------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
Aerospace & Military Technology (5.18%)
Boeing Co. 38,000 $ 1,588,856
United Technologies Corp. 23,570 1,387,684
------------
2,976,540
------------
Air Transport (1.58%)
AMR Corp.<F*> 34,370 908,640
------------
Apparel (1.90%)
CVS Corp. 27,300 1,092,000
------------
Business Machines (3.69%)
IBM Corp. 10,700 1,172,313
Synposys Inc.<F*> 27,480 949,764
------------
2,122,077
------------
Chemicals (1.61%)
Honeywell International Inc. 27,425 923,866
------------
Commercial Banking (4.68%)
Bank of America Corp. 19,010 817,430
Chase Manhattan Corp. (new) 18,075 832,570
Citigroup Inc. 17,210 1,036,903
------------
2,686,903
------------
Construction (1.99%)
Vulcan Materials Co. 26,800 1,144,012
------------
Drugs & Medicines (8.26%)
Baxter International 16,200 1,139,054
Beckman Instruments 16,300 951,513
Merck & Co. Inc. 17,850 1,367,756
Tenet Healthcare 47,700 1,287,900
------------
4,746,223
------------
Energy & Utilities (2.47%)
FPL Group Inc. 28,700 1,420,650
------------
Energy Raw Materials (1.56%)
Baker Hughes Inc. 28,030 896,960
------------
Finance (Non-Banking) (6.16%)
Associates First Capital Corp. 47,300 1,055,358
Lehman Brothers Holding Inc. 12,000 1,134,744
Providian Financial Corp. 15,000 1,350,000
------------
3,540,102
------------
Food & Agriculture (4.76%)
Conagra Inc. 73,100 1,393,432
Sara Lee Corp. 69,400 1,340,253
------------
2,733,685
------------
Government & State Agency (1.80%)
Federal Home Loan Mortgage Corp. 25,500 1,032,750
------------
<PAGE>
<CAPTION>
--------------------------------------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
Industrial Miscellaneous (2.99%)
Diamond Offshore Drilling Inc. 27,860 $ 978,583
Lowes Companies Inc. 18,000 739,116
------------
1,717,699
------------
Insurance (2.07%)
Axa Financial Inc. 34,900 1,186,600
------------
International Oil (4.23%)
BP Amoco PLC 19,432 1,099,113
Exxon Mobile Corp. 16,932 1,329,162
------------
2,428,275
------------
Media (4.15%)
Comcast Corp.<F*> 21,800 882,900
McGraw-Hill Inc. 27,800 1,501,200
------------
2,384,100
------------
Miscellaneous Finance (2.54%)
American General Corp. 23,900 1,457,900
------------
Motor Vehicles (1.94%)
Eaton Corp. 16,620 1,113,540
------------
Non-Durables & Entertainment (1.36%)
Costco Wholesale Corp.<F*> 23,600 778,800
------------
Non-Ferrous Metals (1.73%)
Alcoa Inc. 34,320 995,280
------------
Optical Photographic Equipment (2.54%)
Eastman Kodak Co. 24,500 1,457,750
------------
Paper & Forest Products (1.87%)
Weyerhaeuser Co. 25,000 1,075,000
------------
Producer Goods (5.81%)
Delphi Automotive Systems 66,600 969,829
Illinois Tool Works Inc. 20,800 1,185,600
Ingersoll-Rand Co. 29,340 1,180,935
------------
3,336,364
------------
Retail (10.51%)
Family Dollar Stores 59,200 1,158,070
K Mart Corp.<F*> 125,800 856,950
Kroger Co.<F*> 84,400 1,862,033
TJX Cos Inc. 58,000 1,087,500
Tricon Global Restaurants<F*> 38,060 1,075,195
------------
6,039,748
------------
Telephone (5.46%)
A T & T Corp. 24,450 773,231
Sprint Corp. 19,440 991,440
Worldcom Inc. 29,900 1,371,663
------------
3,136,334
------------
(continued)
28
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MANAGED EQUITY FUND
---------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
Tobacco (2.45%)
Philip Morris Companies Inc. 52,930 $ 1,405,926
------------
Travel & Recreation (1.68%)
Carnival Corp. 22,200 432,900
Sabre Holdings Corp. 18,644 531,354
------------
964,254
------------
Utilities Electrical & Gas (2.17%)
Peco Energy Co. 30,840 1,243,221
------------
TOTAL COMMON STOCK (99.14%)
(AMORTIZED COST $51,459,998) 56,945,199
------------
<CAPTION>
--------------------------------------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper (0.78%)
Centennial Energy Holdings, 7.20%, due 7/3/00 $450,000 450,000
------------
TOTAL SHORT TERM SECURITIES (0.78%)
(AMORTIZED COST $450,000) 450,000
------------
TOTAL INVESTMENTS (99.92%)
(AMORTIZED COST $51,909,998) 57,395,199
Other net assets (0.08%) 45,304
------------
TOTAL NET ASSETS (100.00%) $ 57,440,503
============
<FN>
<F*> Non-income producing securities.
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
--------------------------------------------------------------------
MANAGEMENT DISCUSSION
The Asset Allocation Fund's first-half return of nearly 7.0% gross
surpassed the S&P 500 (down 0.4%), the Lipper Flexible Portfolio
Average (up 1.9%), as well as the Russell 1000 Growth Index (up
4.0%) despite continuing to maintain a 20% allocation to fixed
income securities (up 0.3%) over the past two quarters.
While the technology sector (up 3%) continued to outperform the
overall equity market at the end of the second quarter, it was
easily surpassed by the health care sector (up 24%) and the
utilities sector (up 15%). The communications services sector,
which was a stellar performer in 1999, was very weak through the
first six months of this year (down 16%). Despite some profit
taking in the Fund's technology holdings this year, we maintain a
10% overweight in this key sector of the market. We continue to
maintain a slightly overweight exposure to the communications
services sector at midyear.
Some standout holdings in the Fund at midyear include: Philips
Electronics (up 41% year-to-date), Pharmacia (up 45%), Walt Disney
(up 33%), Eli Lilly (up 50%), Oracle (up 50%), and Intel (up 62%).
The Fund's median market capitalization was $43.4 billion. The
average duration for the fixed income portion of the Fund was 3.53
years versus the Lehman Intermediate Government/Corporate Index of
3.47 years. As of June 30, the asset allocation mix in the Fund
stood at 79% stocks, 20% bonds and 1% cash.
--------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
--------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS LIFE OF FUND
<S> <C> <C> <C> <C>
Annual Returns 18.82% 18.65% 13.92% 13.34%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
30
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
<TABLE>
--------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
June 30, 2000 (unaudited)
ASSETS:
Investments, at market value:
(see accompanying schedules)
Bonds $ 32,423,297
Common stocks 125,644,284
Short term securities 1,620,000
------------
Total investments 159,687,581
Cash 79,294
Receivable from broker 497,397
Dividends and interest receivable 634,673
------------
Total assets 160,898,945
------------
LIABILIITIES:
Payable to Conning Asset Management
Company 70,454
Payable to General American Life
Insurance Company 14,091
------------
Total liabilities 84,545
------------
Total net assets $160,814,400
============
TOTAL SHARES OF CAPITAL STOCK
OUTSTANDING 3,255,206
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 49.40
TOTAL AMORTIZED COST OF INVESTMENTS $109,962,609
</TABLE>
<TABLE>
--------------------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the six months ended June 30, 2000
(unaudited)
INVESTMENT INCOME:
Dividends $ 466,779
Interest 1,151,777
------------
Total investment income 1,618,556
------------
EXPENSES:
Investment management charge 394,807
Administrative charge 78,961
------------
Total expenses 473,768
------------
Net investment income 1,144,788
------------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 20,343,354
------------
NET UNREALIZED LOSS ON INVESTMENTS:
Net unrealized loss on investments (11,516,028)
------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 9,972,114
============
</TABLE>
<PAGE>
<TABLE>
----------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- ------------
2000<F*> 1999
------------- ------------
<S> <C> <C>
Operations:
Net investment income $ 1,144,788 $ 2,091,559
Net realized gain on investments 20,343,354 43,126
Net unrealized gain (loss) on investments (11,516,028) 26,655,271
------------ ------------
Net increase in net assets from operations 9,972,114 28,789,956
Capital share transactions (1,218,277) (1,238,902)
------------ ------------
Net increase in net assets 8,753,837 27,551,054
Net assets, beginning of year 152,060,563 124,509,509
------------ ------------
Net assets, end of period $160,814,400 $152,060,563
============ ============
<FN>
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
31
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
<TABLE>
----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
-------- ----------------------------------------------------
2000<F*> 1999 1998 1997 1996
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 46.32 $ 37.55 $ 31.86 $ 26.83 $ 23.20
-------- -------- -------- -------- -------
Income from operations:
Net investment income 0.35 0.63 0.81 0.96 0.93
Net realized and unrealized gain on investments 2.73 8.14 4.88 4.07 2.70
-------- -------- -------- -------- -------
Net increase in asset value per share 3.08 8.77 5.69 5.03 3.63
-------- -------- -------- -------- -------
Net asset value, end of period 49.40 $ 46.32 $ 37.55 $ 31.86 $ 26.83
======== ======== ======== ======== =======
Total return <F2> 6.64% 23.37% 17.86% 18.73% 15.66%
Net assets, end of period (in thousands) $160,814 $152,061 $124,510 $111,269 $86,191
Ratio of expenses to average net assets <F3> 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net investment income to average net
assets <F3> 1.46% 1.56% 2.42% 3.24% 3.77%
Portfolio turnover rate 20.08% 12.21% 34.03% 36.34% 32.78%
<CAPTION>
YEAR ENDED DECEMBER 31
-------------------------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 18.00 $ 18.74 $ 17.11 $ 16.04 $ 13.39
-------- -------- -------- -------- -------
Income from operations:
Net investment income 0.82 0.68 0.60 0.62 0.65
Net realized and unrealized gain (loss) on
investments 4.38 (1.42) 1.03 0.45 2.00
-------- -------- -------- -------- -------
Net increase (decrease) in asset value per share 5.20 (0.74) 1.63 1.07 2.65
-------- -------- -------- -------- -------
Net asset value, end of year $ 23.20 $ 18.00 $ 18.74 $ 17.11 $ 16.04
======== ======== ======== ======== =======
Total return <F2> 28.88% (3.95%) 9.55% 6.66% 19.81%
Net assets, end of year (in thousands) $ 73,387 $ 59,975 $ 65,070 $ 53.369 $21,149
Ratio of expenses to average net assets <F3> 0.60% 0.60% 0.60% 0.60% 0.60%
Ratio of net investment income to average net
assets <F3> 3.92% 3.70% 3.33% 3.80% 4.37%
Portfolio turnover rate 33.74% 75.24% 27.59% 12.14% 5.14%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> The total return information shown in this table does not reflect expenses
that apply to the separate accounts investing in the Fund or to the insurance
or variable annuity contracts. Inclusion of these charges would reduce the
total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
32
<PAGE>
<PAGE>
<TABLE>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
-------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------
US Government Securities (8.88%)
<S> <C> <C>
Quebec Providence, 8.10%,
due 04/23/2002 $1,000,000 $ 1,018,140
US Treasury Bonds, 7.250%,
due 05/15/2016 1,500,000 1,653,285
US Treasury Notes, 6.625%,
due 03/31/2002 1,000,000 1,002,660
US Treasury Notes, 6.250%,
due 06/30/2002 1,000,000 997,190
US Treasury Notes, 5.500%,
due 05/31/2003 1,000,000 976,870
US Treasury Bonds, 6.000%,
due 08/15/2004 1,000,000 990,620
US Treasury Notes, 6.375%,
due 08/15/2002 1,000,000 999,060
US Treasury Notes, 7.250%,
due 05/15/2004 1,000,000 1,031,410
US Treasury Notes, 5.750%,
due 08/15/2003 1,000,000 982,970
US Treasury Notes, 5.875%,
due 10/31/2001 1,500,000 1,488,285
US Treasury Notes, 6.250%,
due 01/31/2002 1,300,000 1,295,528
US Treasury Notes, 7.000%,
due 07/15/2000 1,000,000 1,036,250
US Treasury Notes, 6.500%,
due 10/15/2006 800,000 809,624
------------
TOTAL GOVERNMENT SECURITIES
(8.88%)
(AMORTIZED COST
$14,303,949) 14,281,892
------------
CORPORATE BONDS
Air Transport (0.60%)
Delta Airlines, 9.200%,
due 09/23/2014 1,000,000 961,900
------------
Commercial Banking (0.15%)
Boatmen's Bancshares,
6.750%, due 03/15/2003 250,000 246,320
------------
Chemicals (0.16%)
E I Dupont De Nemours &
Co., 8.250%, due
09/15/2006 250,000 262,580
------------
Construction (0.31%)
Hanson Overseas BV,
7.375%, due 01/15/2003 500,000 496,815
------------
Finance (Non-Banking) (1.53%)
Associates Corp., 6.875%,
due 02/01/2003 500,000 493,800
Goldman Sachs Group,
7.800%, due 01/28/2010 500,000 494,840
<PAGE>
<CAPTION>
-------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------
Finance (Non-Banking) (continued)
<S> <C> <C>
Bear Stearns Co., 6.750%,
due 04/15/2003 $1,000,000 $ 973,620
Merrill Lynch & Co. Inc.,
7.375%, due 08/17/2002 500,000 500,010
------------
2,462,270
------------
Food & Agriculture (1.42%)
Coca-Cola Company, 6.625%,
due 10/01/2002 500,000 492,105
Pepsi Bottling, 5.625%,
due 02/17/2009 2,000,000 1,785,700
------------
2,277,805
------------
Liquor (0.31%)
Anheuser-Busch Companies
Inc., 6.900%, due
10/01/2002 500,000 493,700
------------
Media (0.31%)
Seagram Company Ltd.,
8.35%, due 11/15/2006 500,000 504,530
------------
Motor Vehicles (0.62%)
Enterprise Rent A Car,
7.500%, due 06/15/2003 1,000,000 996,300
------------
Non-Durables & Entertainment
(0.61%)
Waste Management Inc.,
6.000%, due 05/15/2001 1,000,000 975,520
------------
Railroads & Shipping (0.30%)
Canadian National Railway,
6.625%, due 05/15/2003 500,000 485,225
------------
Retail (0.61%)
Wal-Mart Stores, 6.875%,
due 08/10/2009 1,000,000 976,870
------------
Telephone (0.89%)
GTE Southwest, 6.540%,
due 12/01/2005 500,000 477,420
MCI Worldcom Inc., 6.400%,
due 08/15/2005 1,000,000 951,920
------------
1,429,340
------------
Utilities, Electrical & Gas
(1.56%)
Consolidated Edison,
7.375%, due 09/15/2000 500,000 500,390
Niagara Mohawk Power,
9.750%, due 11/01/2005 500,000 536,960
National Rural Utility,
7.375%, due 02/10/2003 500,000 501,760
(continued)
33
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
-------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
-------------------------------------------------------
Utilities, Electrical & Gas (continued)
<S> <C> <C>
Northern States Power,
6.125%, due 12/01/2005 $ 500,000 $ 469,485
Texas Utilities Co.,
7.375%, due 08/01/2001 500,000 500,255
------------
2,508,850
------------
TOTAL CORPORATE BONDS (9.38%)
(AMORTIZED COST
$15,400,305) 15,078,025
------------
MORTGAGE BACKED SECURITIES
AND CMO'S
Government & State Agency
(1.90%)
FNMA, 5.250%, due
01/15/2003 1,000,000 960,000
------------
FNMA, 6.375%, due
06/15/2009 1,000,000 950,620
------------
FNMA, 6.250%, due
11/15/2002 1,000,000 984,840
------------
FNMA 1992-128G, 6.000%,
due 02/25/2022 170,370 167,920
------------
TOTAL MORTGAGE BACKED
SECURITIES AND CMO'S
(1.90%) (AMORTIZED COST
$3,052,509) 3,063,380
------------
TOTAL BONDS (20.16%)
(AMORTIZED COST 32,756,763) 32,423,297
------------
<CAPTION>
-------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
-------------------------------------------------------
Aerospace & Military Technology (1.94%)
<S> <C> <C>
United Technologies Corp. 53,000 3,120,375
------------
Air Transport (0.91%)
AMR Corp.<F*> 55,610 1,470,162
------------
Apparel (1.02%)
CVS Corp. 40,940 1,637,600
------------
Business Machines (9.77%)
Compaq Computer Corp. 99,700 2,548,531
EMC Corp./Mass.<F*> 64,490 4,961,667
IBM Corp. 30,200 3,308,772
Oracle Corp.<F*> 58,270 4,898,293
------------
15,717,263
------------
Business Services (7.30%)
Microsoft Corp.<F*> 20,700 1,656,000
CSG Systems
International<F*> 100,600 5,639,837
<PAGE>
<CAPTION>
-------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
-------------------------------------------------------
Business Services (continued)
<S> <C> <C>
Cisco Systems Inc.<F*> 70,000 $ 4,449,340
------------
11,745,177
------------
Chemicals (2.41%)
Ecolab, Inc. 40,000 1,562,480
Pharmacia Corp. 44,610 2,305,757
------------
3,868,237
------------
Commercial Banking (4.76%)
Bank of America Corp. 40,874 1,757,582
Chase Manhattan Corp.
(new) 61,200 2,818,994
Citigroup Inc. 51,000 3,072,750
------------
7,649,326
------------
Drugs & Medicines (5.60%)
Baxter International 25,000 1,757,800
Eli Lilly & Co. 17,330 1,730,834
Merck & Co Inc. 28,800 2,206,800
Pfizer Inc. 68,950 3,309,600
------------
9,005,034
------------
Electronics (7.35%)
Intel Corp. 29,900 3,997,241
Motorola Inc. 23,300 677,145
Philips Electronics 60,560 2,876,600
Texas Instruments Inc. 62,040 4,261,341
------------
11,812,327
------------
Energy Raw Materials (1.58%)
Halliburton Co. 54,000 2,548,098
------------
Finance (Non-Banking) (1.23%)
Providian Financial Corp. 22,000 1,980,000
------------
Food & Agriculture (2.43%)
Coca-Cola Company 31,000 1,780,547
Pepsico Inc. 48,000 2,132,976
------------
3,913,523
------------
Government & State Agency
(0.88%)
Federal Home Loan Mortgage
Corp. 35,000 1,417,500
------------
Industrial Miscellaneous
(3.23%)
Circuit City Stores Inc. 72,000 2,389,464
Diamond Offshore Drilling
Inc. 80,000 2,810,000
------------
5,199,464
------------
(continued)
34
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY ASSET ALLOCATION FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
-------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
-------------------------------------------------------
<S> <C> <C>
Insurance (2.42%)
American International
Group Inc. 33,125 $ 3,892,188
------------
Media (0.76%)
Comcast Corp. 30,200 1,223,100
------------
Miscellaneous Finance (1.57%)
American General Corp. 41,300 2,519,300
------------
Non-Durables & Entertainment
(1.04%)
Costco Wholesale
Corporation<F*> 50,600 1,669,800
------------
Producer Goods (2.77%)
General Electric Corp. 84,000 4,452,000
------------
Retail (7.46%)
Family Dollar Stores 110,500 2,161,601
K Mart Corp.<F*> 90,950 619,551
Radio Shack Corp. 55,050 2,607,994
Kroger Co.<F*> 119,400 2,634,203
TJX Cos. Inc. 138,400 2,595,000
McDonald's Corp. 41,700 1,373,473
------------
11,991,822
------------
Soaps & Cosmetics (1.07%)
Bristol-Myers Squibb Co. 29,400 1,712,550
------------
Telephone (7.50%)
Lucent Technologies 56,290 3,335,183
Worldcom Inc.<F*> 70,760 3,246,115
Nextlink Communications
Inc.-A<F*> 81,200 3,080,484
Sprint Corp.<F*> 47,140 2,404,140
------------
12,065,922
------------
Travel & Recreation (3.13%)
Carnival Corp. 51,800 1,010,100
Sabre Holdings Corp. 59,463 1,694,696
Walt Disney Productions 60,000 2,328,720
------------
5,033,516
------------
TOTAL COMMON STOCK (78.13%)
(COST $75,585,846) 125,644,284
------------
<PAGE>
<CAPTION>
--------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
--------------------------------------------------------
<S> <C> <C>
Commercial Paper (1.01%)
Centennial Energy
Holdings,
7.20%, due 07/03/2000 $1,620,000 $ 1,620,000
------------
TOTAL SHORT TERM SECURITIES
(1.01%)
(AMORTIZED COST $1,620,000) 1,620,000
------------
TOTAL INVESTMENTS (99.30%)
(AMORTIZED COST
$109,962,609) 159,687,581
Other net assets (0.70%) 1,126,819
------------
TOTAL NET ASSETS (100.00%) $160,814,400
============
<FN>
<F*> Non-income producing securities.
</TABLE>
See accompanying notes to financial statements.
35
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
--------------------------------------------------------------------
MANAGEMENT DISCUSSION
Only nine country-specific indices (of the 33 Standard & Poor's
All-World Indices) posted second quarter 2000 price gains. As the
quarter ended, most of last year's winners had given their returns
back for this year. The Australian market's 10% gain outpaced the
returns of all other global markets in the quarter. The Canadian
stock market advanced 6% largely from the performance of financial
and energy companies. The rest of the top performers came from
Europe confirming recent optimism there.
The divergence between technology and non-technology stocks that
has been experienced in the domestic markets has also been seen in
the international markets as well. For example, in several Asian
markets, when you subtract technology and new economy stocks from
the indices, the price-to-earnings ratios fall to levels similar to
the valuations recorded during the Asian crisis of 1998. These
numbers continue to look compelling from a valuation perspective.
--------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
[FN]
<F*> On January 1, 1999 Conning Asset Management Company assumed portfolio
management duties from the former sub-advisor of the fund, Provident Capital
Management, Inc. On January 1, 1999 the fund also changed its investment
objective to be one which parallels the price and yield performance of the
publicly-traded common stocks in the Morgan Stanley Capital International
Europe, Australia, and Far East Index ("EAFE" Index").
--------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
<S> <C> <C> <C>
Annual Returns 17.13% 11.16% 12.90%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
36
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
<TABLE>
--------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
June 30, 2000 (unaudited)
ASSETS:
Investments, at market value:
(see accompanying schedules)
Common stocks $13,347,763
Bonds, rights, and warrants 3,072
Short term securities 290,000
-----------
Total investments 13,640,835
Cash 5,828
Broker Receivable 3,832
Dividends receivable 40,617
-----------
Total assets 13,691,112
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 5,716
Payable to General American Life
Insurance Company 3,629
-----------
Total liabilities 9,345
-----------
Total net assets $13,681,767
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 559,173
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 24.47
TOTAL AMORTIZED COST OF INVESTMENTS $10,744,699
</TABLE>
<TABLE>
--------------------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the six months ended June 30, 2000
(unaudited)
INVESTMENT INCOME:
Dividends $ 113,172
Interest 8,025
-----------
Total investment income 121,197
-----------
EXPENSES:
Investment management charge 32,784
Administrative charge 20,807
-----------
Total expenses 53,591
-----------
Net investment income 67,606
-----------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain on investments 1,507,062
Net realized loss on foreign currency
conversions (100,264)
-----------
NET REALIZED GAIN FROM INVESTMENTS AND
FOREIGN CURRENCY 1,406,798
-----------
NET UNREALIZED LOSS ON INVESTMENTS AND
FOREIGN CURRENCY:
Net unrealized loss on investments (1,827,962)
Net unrealized loss on foreign currency
conversions (305,168)
-----------
NET UNREALIZED LOSS FROM INVESTMENTS AND
FOREIGN CURRENCY (2,133,130)
-----------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (658,726)
===========
</TABLE>
<PAGE>
<TABLE>
--------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- -----------
2000<F*> 1999
------------- -----------
<S> <C> <C>
Operations:
Net investment income $ 67,606 $ 137,318
Net realized gain (loss) on investments and foreign
currency conversions 1,406,798 (1,219)
Net unrealized gain (loss) on investments and foreign
currency (2,133,130) 3,036,098
----------- -----------
Net increase (decrease) in net assets from
operations (658,726) 3,172,197
Capital share transactions 229,853 243,784
----------- -----------
Net increase (decrease) in net assets (428,873) 3,415,981
Net assets, beginning of period 14,110,640 10,694,659
----------- -----------
Net assets, end of period $13,681,767 $14,110,640
=========== ===========
<FN>
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
37
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND<F*>
<TABLE>
------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
--------- -------------------------------------------------------
2000<F**> 1999 1998 1997 1996
--------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 25.65 $ 19.87 $ 16.60 $ 16.23 $ 15.11
-------- ------- ------- ------- -------
Income from operations:
Net investment income 0.12 0.26 0.24 0.26 0.24
Net realized and unrealized gain (loss) on
investments <F4> (1.30) 5.52 3.03 0.11 0.88
-------- ------- ------- ------- -------
Net increase (decrease) in asset value per
share (1.18) 5.78 3.27 0.37 1.12
-------- ------- ------- ------- -------
Net asset value, end of period $ 24.47 $ 25.65 $ 19.87 $ 16.60 $ 16.23
======== ======= ======= ======= =======
Total return <F2> (4.62%) 29.08% 19.76% 2.27% 7.40%
Net assets, end of period (in thousands) $ 13,682 $14,111 $10,695 $ 8,427 $ 7,015
Ratio of expenses to average net assets
<F3><F*> 0.78% 0.79% 0.80% 0.80% 1.00%
Ratio of net investment income to average
Net assets <F3> 0.99% 1.17% 1.29% 1.53% 1.57%
Portfolio turnover rate 27.15% 24.75% 4.90% 57.70% 19.53%
<PAGE>
<CAPTION>
FEBRUARY 16
YEAR ENDED (INCEPTION) TO
DECEMBER 31 DECEMBER 31
------------------------ --------------
1995 1994 1993
-------- ------- --------------
<S> <C> <C> <C>
Net asset value, beginning of year <F1> $ 13.94 $ 13.10 $ 10.00
-------- ------- -------
Income from operations:
Net investment income 0.25 0.13 0.14
Net realized and unrealized gain on
investments <F4> 0.92 0.71 2.96
-------- ------- -------
Net increase in asset value per share 1.17 0.84 3.10
-------- ------- -------
Net asset value, end of year $ 15.11 $ 13.94 $ 13.10
======== ======= =======
Total return <F2> 8.35% 6.42% 31.03%
Net assets, end of year (in
thousands) $ 5,460 $ 4,242 $ 3,295
Ratio of expenses to average net
assets <F3><F*> 1.00% 1.00% 1.00%
Ratio of net investment income to
average Net assets <F3> 1.79% 0.98% 1.38%
Portfolio turnover rate 113.91% 46.19% 26.97%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> Total return is not annualized for the eleven months ended December 31,
1993. The total return information shown in this table does not reflect
expenses that apply to the separate accounts investing in the Fund or to the
insurance or variable annuity contracts. Inclusion of these charges would
reduce the total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F4> Includes net realized and unrealized gain (loss) on foreign currency
conversions.
<F*> Name and investment objective changed from the International Equity Fund
on January 1, 1997. In addition Conning Asset Management Company took over the
asset management of the International Index Fund. The investment advisor fee
changed from .70 percent to .50 percent on the first $10 million of the average
daily value of the net assets, from .60 percent to .40 percent on the balance
over $10 million and less than $20 million, and from .50 percent to .30 percent
on the balance in excess of $20 million. The objective of the International
Index Fund is to obtain investment results that parallel the price and yield
performance of publicly traded common stocks in the EAFE Index.
<F**> Unaudited
</TABLE>
See accompanying notes to the financial statements.
38
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
<TABLE>
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Australia (2.10%)
Broken Hill Properties 2,885 $ 34,211
National Australia Bank Ltd. 2,900 48,577
News Corp. 3,692 44,701
News Corp. Ltd. AU 2,773 38,294
Telstra Corporation Limited 13,400 54,549
Western Mining Ltd. 4,131 18,536
Westpac Banking 6,706 48,517
------------
287,385
------------
Austria (0.14%)
Bank Austria AG 400 19,563
------------
Belgium (0.39%)
Electrabel SA 90 22,336
Fortis AG 1,017 29,714
Fortis (B) - Strip VVPR<F*> 2,079 20
Fortis - Strip VVPR<F*> 5 241
------------
52,311
------------
Chile (0.42%)
Empresa Nacional Electric 2,920 56,793
------------
Denmark (0.89%)
Den Danske Bank 200 24,157
Novo-Nordisk 315 53,834
Tele Danmark 638 43,123
------------
121,114
------------
Finland (3.12%)
Metso OYJ 32 387
Nokia OYJ 6,800 348,409
Sonera OYJ 1,100 50,350
UPM - Kymmene Corp. 1,100 27,416
------------
426,562
------------
France (11.99%)
Alcatel Alsthom 1,130 74,416
Aventis 1,100 80,613
AXA UAP 305 48,241
Banque National de Paris 362 34,979
Bouygues 89 59,720
Canal Plus 211 35,598
Cap Gemini SA 208 36,787
Carrefour Supermarche 1,278 87,715
France Telecom SA 1,353 189,877
Groupe Danone 500 66,622
L'Air Liquide 151 19,772
L'Oreal 100 86,944
LVMH Moet-Hennessy Louis
Vuitton 130 53,822
Pinault-Printemps-Redoute 266 59,335
Sanofi-Synthelabo SA 2,464 117,862
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
France (continued)
Societe Generale Paris 500 $ 30,196
St Gobain 250 33,934
St Microelectronics NV 1,260 79,716
Suez Lyonnaise Des Eaux 880 154,793
Total Fina SA - B 1,356 208,755
Total Fina SA-Strip VVPR<F*> 450 4
Vivendi 900 79,759
------------
1,639,460
------------
Germany (8.62%)
Allianz AG 400 142,753
BASF AG 1,000 40,740
Bayer AG 1,200 46,127
Bayerische HYPO 950 62,379
Daimler-Chrysler AG 1,704 90,819
Deutsche Bank AG 1,150 96,513
Deutsche Telekom AG 4,350 251,860
Dresdner Bank AG 800 32,515
EON AG 1,320 63,900
Metro AG 450 15,313
Muenchener Rueckvers 200 62,883
RWE AG 1,450 49,413
SAP AG 300 45,552
SAP AG-Vorzug 50 9,385
Siemens AG 950 142,791
Volkswagen AG 700 27,042
------------
1,179,985
------------
Great Britain (17.30%)
Abbey National PLC 2,691 32,186
Allied Zurich PLC 3,286 38,880
Barclays PLC 2,463 61,267
BG Group PLC 6,157 39,804
British Aerospace PLC 3,247 20,254
British American Tobacco PLC 4,559 30,439
British Petroleum 30,487 292,638
British Sky Broadcasting
PLC<F*> 2,769 54,164
British Telecommunications 10,578 136,769
Cable & Wireless 900 15,248
Centrica PLC 7,065 23,586
Diago PLC 8,401 75,425
Glaxo Holdings PLC 6,459 188,440
Granada Group PLC 8,189 81,828
Halifax PLC 3,866 37,109
HSBC Holdings 600 6,851
HSBC Holdings PLC 9,900 113,239
Invensys PLC 11,095 41,659
Lloyds TSB Group 8,206 77,525
Marconi PLC 4,442 57,837
(continued)
39
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Great Britain (continued)
Marks & Spencer 10,201 $ 35,870
Pearson PLC 1,031 32,780
Prudential Corporation PLC 3,236 47,425
Reuters Group PLC 2,351 40,115
Rio Tinto PLC- REG 1,730 28,288
Sage Group PLC 4,092 33,145
Smithkline Beecham PLC 10,074 131,931
Tesco 20,100 62,537
Unilever PLC 4,830 29,251
Vodafone Group 89,678 362,514
Zeneca Group PLC 2,957 138,113
------------
2,367,117
------------
Hong Kong (1.99%)
Bank of East Asia 7,400 17,278
Cable & Wireless HKT Ltd. 12,600 27,722
Cheung Kong 3,000 33,194
CLP Holdings Ltd. 5,500 25,613
Hang Seng Bank 3,200 30,378
Hutchison Whampo 6,600 82,976
New World Development 5,000 5,581
Sun Hung Kai Properties 3,000 21,552
Swire Pacific "A" 3,500 20,475
Wharf Holdings 4,000 7,158
------------
271,927
------------
Ireland (0.23%)
Allied Irish 3,528 31,722
------------
Italy (4.42%)
Assicurazioni Generali 2,000 68,827
Credito Italiano 10,654 51,166
Enel SPA 14,512 64,547
Ente Nazionale Idrocarburi 14,587 84,597
Fiat SPA ITL1000 770 20,062
Mediaset SPA 3,500 53,681
Olivetti SPA 10,000 36,522
San Paolo - IMI SPA 3,061 54,548
Telecom Italia Mobile 9,198 94,343
Telecom Italia SPA 5,555 76,679
------------
604,972
------------
Japan (26.92%)
Asahi Bank 8,000 33,724
Asahi Glass Co. Ltd. 4,000 44,801
Bank of Tokyo-Mitsubishi 7,000 84,753
Canon 1,000 49,905
Daiwa Securities 2,000 26,465
Denso Corp. 1,000 24,385
East Japan Railway 7 40,756
Fanuc Co. Ltd. 1,100 112,182
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Japan (continued)
Fuji Bank 5,000 $ 38,090
Fuji Photo 1,000 41,020
Fujitsu 6702 3,000 104,063
Hitachi Ltd. JPY5 6,000 86,766
Honda Motors 1,000 34,121
Industrial Bank Japan 5,000 37,996
Ito Yokado 8264 1,000 60,302
Japan Air Lines 9,000 34,281
Kansai Electric Power 1,700 30,497
Kao Corp. 3,000 91,870
Kinki Nippon Railway 3,000 12,193
Komatsu Ltd. 1,000 7,051
Kyocera 500 85,018
Maruko Co. Ltd. 50 399
Marutomi Group<F*> 75 82
Matsushita Electronics 4,000 103,968
Mitsubishi Chemical Corp. 4,157 17,091
Mitsubishi Corp. 2,000 18,128
Mitsubishi Electric 4,000 43,402
Mitsubishi Estate Co. 5,000 58,978
Mitsubishi Heavy Industries 6,000 26,654
Mitsubishi Trust 4,000 31,115
Mitsui Company 2,000 15,312
NEC Corp. 2,000 62,948
Nikon 2,000 74,290
Nintendo 700 122,531
Nippon Steel Corp. 11,000 23,185
Nippon Telegraph & Telephone 23 306,517
Nissan Motor Co., Ltd.<F*> 9,000 53,166
Nissen<F*> 50 216
Nomura Securities 4,000 98,108
Rohm Co. Limited 400 117,201
Sakura Bank 7,000 48,496
Sankyo Co., Ltd. 2,000 45,273
Sanyo Electric Co. Ltd. 4,000 36,068
Secom Co. Ltd. 1,000 73,250
Sharp Corp. 2,000 35,444
Shin-Etsu Chemical Co. 2,000 101,700
Softbank Corp. 600 81,662
Sony Corp. 1,000 93,571
Sumitomo Bank Ltd. 8,000 98,297
Takeda Chemical Industries 4,000 263,134
Tohoku Electric Power 1,100 14,867
Tokai Bank 3,000 14,830
Tokio Marine & Fire 2,000 23,138
Tokyo Electric Power 2,300 56,195
Toshiba 6502 15,000 169,705
(continued)
40
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Japan (continued)
Toyota Motor Corp. 6,000 $ 273,909
------------
3,683,069
------------
Netherlands (5.59%)
ABN AMRO Holdings 1,756 43,193
Aegon NV 1,826 65,237
Akzo 828 35,320
ASM Lithography Hldg.<F*> 774 33,402
Elsevier 1,359 16,532
ING Groep N.V. 1,234 83,749
Koninklijke Ahold NV 600 17,732
Koninklijke PTT Nederland 1,200 53,892
Philips Electronics 2,136 101,149
Royal Dutch Petroleum 3,666 228,774
TNT Post Group 600 16,248
Unilever NV 1,192 54,904
Wolters Kluwer-CVA 544 14,549
------------
764,681
------------
New Zealand (0.14%)
Telecom Corp. of New Zealand 5,300 18,588
------------
Norway (0.30%)
Den Norske Bank ASA 2,900 12,078
Norsk Hydro 700 29,482
------------
41,560
------------
Portugal (0.34%)
Electricidade de Portugal, SA 1,000 18,232
Portugal Telecom SA 2,500 28,183
------------
46,415
------------
Scotland (1.16%)
Royal Bank of Scotland 9,518 159,378
------------
Singapore (0.64%)
Oversea-Chinese Banking Corp. 5,040 34,688
Singapore Airlines Ltd. 2,000 19,780
Singapore
Telecommunications<F*> 23,000 33,655
------------
88,123
------------
Spain (1.98%)
Banco Bilbao Vizcaya, SA 4,806 72,099
Banco Santander Central 4,092 43,344
Repsol (ADR) 285 5,646
Repsol SA 1,686 33,697
Telefonica (ADR)<F*> 364 23,318
Telefonica de Despana<F*> 4,320 93,175
------------
271,279
------------
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Sweden (2.85%)
Ericsson LM B 10,400 $ 206,916
Foreningssparbanken AB 2,100 30,887
Hennes and Mauritz 2,700 56,643
Skandia Forsakring A 2,600 69,071
Volvo AB SEK5 1,200 26,201
------------
389,718
------------
Switzerland (6.04%)
ABB Ltd.<F*> 723 86,812
Credit Suisse Group 270 53,880
Givaudan-Reg<F*> 12 3,664
Nestle SA 60 120,472
Novartis AG 130 206,580
Roche Holding AG 2 21,223
Roche Holding AG 10 97,657
Schweizerischer Bankverein 622 91,420
Swiss Reinsurance 40 81,791
Swisscom AG 180 62,542
------------
826,041
------------
TOTAL COMMON STOCK (97.57%)
(AMORTIZED COST $10,451,142) 13,347,763
------------
<CAPTION>
--------------------------------------------------------
PAR MARKET
BONDS VALUE VALUE
--------------------------------------------------------
<S> <C> <C>
Bonds (0.00%)
British Aerospace PLC 7.45%,
due 11/29/2003 $ 1,025 16
------------
TOTAL BONDS (0.00%)
(AMORTIZED COST $657) 16
------------
<CAPTION>
-------------------------------------------------------
MARKET
RIGHTS SHARES VALUE
-------------------------------------------------------
<S> <C> <C>
Rights (0.01%)
Fortis (B) - CVG<F*> 231 1,650
------------
TOTAL RIGHTS (0.01%)
(AMORTIZED COST $1,698) 1,650
------------
(continued)
41
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY INTERNATIONAL INDEX FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
-------------------------------------------------------
MARKET
WARRANTS SHARES VALUE
-------------------------------------------------------
<S> <C> <C>
Warrants (0.00%)
Vivendi (Ex-Gen Des Eaux) WT
Expiring 2001<F*> 300 $ 1,038
United Engineers - Warrant
Expiring 2002<F*> 400 368
------------
TOTAL WARRANTS (0.00%)
(AMORTIZED COST $1,202) 1,406
------------
<CAPTION>
-------------------------------------------------------
PAR MARKET
SHORT TERM INVESTMENTS VALUE VALUE
-------------------------------------------------------
<S> <C> <C>
Commercial Paper (2.12%)
Centennial Energy Holdings
7.20%, due 07/03/2000 $290,000 290,000
------------
TOTAL SHORT TERM INVESTMENTS
(2.12%)
(AMORTIZED COST $290,000) 290,000
------------
TOTAL INVESTMENTS (99.70%)
(AMORTIZED COST $10,744,699) 13,640,835
Other net assets (0.30%) 40,932
------------
TOTAL NET ASSETS (100.00%) $ 13,681,767
============
<FN>
<F*> Non-income producing securities.
</TABLE>
See accompanying notes to the financial statements.
42
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
--------------------------------------------------------------------
MANAGEMENT DISCUSSION
The Mid-Cap Equity Fund rose 4.1% gross for the first six months of
2000, outgaining the S&P 500 (down 0.4%) and the Russell 2000 (up
3.0%). However, the Fund trailed the very powerful year-to-date
return of the technology-laden S&P 400 Mid-Cap Index (up 9.0%).
Medium capitalization stocks outperformed their large-cap brethren
over the course of the last six months as the market started to
correct the huge relative valuation discount that existed at the
end of 1999 between these two equity groups. The disparity still
exists to a large degree, however, with over half the stocks in the
small- to mid-cap universe down nearly 40% from their 52-week
highs.
The performance of the Fund this year is due chiefly to individual
stock performance more than sector weightings. More than half of
the holdings in the Fund were up 8% or more over the past two
quarters. Some noticeable outperformers included: Plantronics (up
61% year-to-date), Northrop Grumman (up 26%), Mallinckrodt (up
42%), Tenet Healthcare (up 40%), CSG Systems (up 41%), and Tech
Data (up 61%). At the end of the second quarter, the Fund's median
price-to-earnings (P/E) ratio was approximately 12 versus an
overall equity market P/E ratio of 25. The Fund's median market
capitalization was $2.4 billion, maintaining its small- to
medium-capitalization bias. The Fund ended the first half of 2000
nearly fully invested with cash reserves at 2% of total assets.
--------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
--------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
<S> <C> <C> <C>
Annual Returns 17.21% 15.79% 13.69%
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
43
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
<TABLE>
--------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
June 30, 2000 (unaudited)
ASSETS:
Investments, at market value:
(see accompanying schedules)
Common stocks $ 9,846,233
Short term securities 200,000
-----------
Total investments 10,046,233
Cash 17,285
Receivable from broker 158,054
Dividends receivable 3,614
-----------
Total assets 10,225,186
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 4,877
Payable to General American Life
Insurance Company 889
Payable to broker 75,019
-----------
Total liabilities 80,785
-----------
Total net assets $10,144,401
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 393,908
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 25.75
TOTAL AMORTIZED COST OF INVESTMENTS $ 8,494,069
</TABLE>
<TABLE>
--------------------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the six months ended June 30, 2000
(unaudited)
INVESTMENT INCOME:
Dividends $ 41,111
Interest 17,981
-----------
Total investment income 59,092
-----------
EXPENSES:
Investment management charge 26,724
Administrative charge 4,862
-----------
Total expenses 31,586
-----------
Net investment income 27,506
-----------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 1,523,120
-----------
NET UNREALIZED LOSS ON INVESTMENTS:
Net unrealized loss on investments (1,214,658)
-----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 335,968
===========
</TABLE>
<PAGE>
<TABLE>
---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- -----------
2000<F*> 1999
------------- -----------
<S> <C> <C>
Operations:
Net investment income $ 27,506 $ 7,055
Net realized gain (loss) on investments 1,523,120 (333,707)
Net unrealized gain (loss) on investments (1,214,658) 1,532,662
----------- ----------
Net increase (decrease) in net assets from
operations 335,968 1,206,010
Capital share transactions (89,852) 159,362
----------- ----------
Net increase in net assets 246,116 1,365,372
Net assets, beginning of year 9,898,285 8,532,913
----------- ----------
Net assets, end of period $10,144,401 $9,898,285
=========== ==========
<FN>
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
44
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND<F*>
<TABLE>
------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30 YEAR ENDED DECEMBER 31
--------- ---------------------------------------------------------
2000<F**> 1999 1998 1997<F*> 1996
--------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 24.81 $ 21.75 $ 22.07 $ 16.42 $ 13.74
------- -------- -------- ------- -------
Income from operations:
Net investment income 0.07 0.02 0.03 0.16 0.15
Net realized and unrealized gain (loss)
on investments 0.87 3.04 (0.35) 5.49 2.53
------- -------- -------- ------- -------
Net increase (decrease) in asset value
per share 0.94 3.06 (0.32) 5.65 2.68
------- -------- -------- ------- -------
Net asset value, end of period $ 25.75 $ 24.81 $ 21.75 $ 22.07 $ 16.42
======= ======== ======== ======= =======
Total return <F2> 3.79% 14.09% (1.48%) 34.46% 19.46%
Net assets, end of period (in thousands) $10,144 $ 9,898 $ 8,533 $ 6,852 $ 4,120
Ratio of expenses to average net assets
<F3> 0.65% 0.64% 0.65% 0.65% 0.65%
Ratio of net investment income to average
net assets <F3> 0.57% 0.08% 0.13% 0.81% 1.02%
Portfolio turnover rate 43.53% 23.92% 33.53% 62.22% 56.31%
<PAGE>
<CAPTION>
FEBRUARY 16
YEAR ENDED (INCEPTION) TO
DECEMBER 31 DECEMBER 31
------------------------ --------------
1995 1994 1993
------ -------- --------------
<S> <C> <C> <C>
Net asset value, beginning of year <F1> $11.35 $ 11.44 $ 10.00
------ -------- --------
Income from operations:
Net investment income 0.05 0.10 0.06
Net realized and unrealized gain
(loss) on investments 2.34 (0.19) 1.38
------ -------- --------
Net increase (decrease) in asset
value per share 2.39 (0.09) 1.44
------ -------- --------
Net asset value, end of year $13.74 $ 11.35 $ 11.44
====== ======== ========
Total return <F2> 21.09% (0.83%) 14.44%
Net assets, end of year (in
thousands) $4,260 $ 3,279 $ 1,998
Ratio of expenses to average net
assets <F3> 0.65% 0.65% 0.64%
Ratio of net investment income to
average net assets <F3> 0.75% 0.85% 0.64%
Portfolio turnover rate 28.48% 29.48% 22.64%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> Total return is not annualized for the eleven months ended December 31,
1993. The total return information shown in this table does not reflect
expenses that apply to the separate accounts investing in the Fund or to the
insurance or variable annuity contracts. Inclusion of these charges would
reduce the total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F*> Name and investment objective changed from the Special Equity Fund
effective January 1, 1997. In addition, Conning Asset Management Company took
over the asset management of the Mid-Cap Equity Fund. The investment objective
is long term capital appreciation, which it pursues through investment
primarily in common stocks of US - based publicly traded companies with medium
market capitalization.
<F**> Unaudited
</TABLE>
See accompanying notes to the financial statements.
45
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
<TABLE>
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Air Transport (2.29%)
Southwest Airlines 12,250 $ 231,978
------------
Apparel (1.40%)
VF Corp. 5,995 141,800
------------
Business Machines (10.33%)
Gateway Inc.<F*> 3,600 204,300
Lexmark International
Group<F*> 2,775 186,619
Plantronics<F*> 2,140 247,170
Synposys Inc.<F*> 5,300 183,179
Tech Data Corp.<F*> 5,200 226,522
------------
1,047,790
------------
Business Services (7.65%)
CSG Systems International<F*> 5,100 285,916
Expeditors International of
Wa. 7,000 332,500
Sungard Data Systems Inc.<F*> 5,100 158,100
------------
776,516
------------
Chemicals (3.58%)
Crompton Corp. 13,800 169,050
Mallinckrodt Inc. 4,470 194,163
------------
363,213
------------
Commercial Banking (3.60%)
Commerce Bancorp<F*> 3,832 176,272
Firstar Corp. 9,000 189,558
------------
365,830
------------
Construction (1.29%)
Lafarge Corp. 6,220 130,620
------------
Consumer Durables (3.16%)
Furniture Brands
International<F*> 7,500 113,438
Lennar Corp. 10,255 207,664
------------
321,102
------------
Domestic Oil (4.27%)
Kerr-McGee Corp.<F*> 3,320 195,671
R & B Falcon Corp.<F*> 10,100 237,976
------------
433,647
------------
Drugs & Medicines (7.44%)
Beckman Instruments 4,310 251,596
Express Scripts Inc.<F*> 5,155 320,254
Tenet Healthcare 6,780 183,060
------------
754,910
------------
Electronics (2.29%)
Dallas Semiconductor Corp. 5,700 232,275
------------
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Finance (Non-Banking)(4.18%)
Affiliated Managers Group<F*> 4,500 $ 204,750
Charter One Financial Inc. 9,514 218,822
------------
423,572
------------
Food & Agriculture (4.76%)
The Earthgrains Co. 12,250 238,103
Suiza Foods Corp.<F*> 5,000 244,375
------------
482,478
------------
Industrial Miscellaneous (6.17%)
Cooper Tire & Rubber 13,000 144,625
Diamond Offshore Drilling
Inc. 5,000 175,625
Hillenbrand Industries 5,530 173,155
Northrop Corp. 2,000 132,500
------------
625,905
------------
Insurance (4.52%)
Enhance Financial Services
Group 13,200 189,750
Radian Group 5,200 269,100
------------
458,850
------------
Liquor (1.63%)
Canandaigua Brands Inc. 3,270 164,929
------------
Media (1.08%)
Primedia Inc.<F*> 4,800 109,200
------------
Miscellaneous & Conglomerates
(2.03%)
Pinnacle West Capital 6,080 205,960
------------
Motor Vehicles (3.57%)
Eaton Corp. 2,950 197,650
Polaris Industries 5,130 164,160
------------
361,810
------------
Non-Durables & Entertainment
(1.47%)
Brunswick 9,000 149,058
------------
Non-Ferrous Metals (1.07%)
Tredegar Industries Inc. 5,700 108,300
------------
Paper & Forest Products (3.04%)
Bowater Inc. 3,620 159,733
Pentair Inc. 4,200 149,100
------------
308,833
------------
Retail (11.33%)
Ethan Allen Interiors 8,050 193,200
Family Dollar Stores 10,250 200,511
Kroger Co.<F*> 14,240 314,163
Office Depot Inc. 5,830 36,438
Payless Shoesource 3,200 164,000
(continued)
46
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY MID-CAP EQUITY FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Retail (continued)
Zale Corp.<F*> 6,600 $ 240,900
------------
1,149,212
------------
Telephone (1.50%)
Nextlink Communications Inc. 4,000 151,748
------------
Trucking & Freight (1.36%)
US Freightways Corp. 5,630 138,284
------------
Utilities Electrical & Gas
(2.05%)
Peco Energy Co. 5,170 208,413
------------
TOTAL COMMON STOCK (97.06%)
(COST $8,294,069) 9,846,233
------------
<CAPTION>
--------------------------------------------------------
PAR MARKET
SHORT TERM SECURITIES VALUE VALUE
--------------------------------------------------------
<S> <C> <C>
Commercial Paper (1.97%)
Cooperative Assoc. of
Tractor
Dealers, "b", 7.05%,
due 07/3/2000 $200,000 $ 200,000
------------
TOTAL SHORT TERM SECURITIES
(1.97%)
(AMORTIZED COST $200,000) 200,000
------------
TOTAL INVESTMENTS (99.03%)
(AMORTIZED COST $8,494,069) 10,046,233
Other net assets (0.97%) 98,168
------------
TOTAL NET ASSETS (100.00%) $ 10,144,401
============
<FN>
<F*> Non-income producing securities.
</TABLE>
See accompanying notes to financial statements.
47
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
--------------------------------------------------------------------
MANAGEMENT DISCUSSION
In April 2000, the Small-Cap Equity Fund underwent a rebalancing to
realign with the smallest 20% (in terms of capitalization) of
companies listed on the New York Stock Exchange. Small-cap equities
suffered through a trying April and May due to the shift in
investor sentiment toward blue-chip stocks. Small-cap stocks
bounced back nicely in June as investors began filing back into
these issues. The Small-Cap Equity Fund declined 0.5% gross in the
first two quarters compared to a 3.0% increase in the Russell 2000
index.
--------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
[GRAPH]
--------------------------------------------------------------------
ANNUAL RETURNS
<TABLE>
<CAPTION>
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR LIFE OF FUND<F*>
<S> <C> <C>
Annual Returns (10.91%) 3.88%
<FN>
<F*> The Small-Cap Equity Fund began operations on May 1, 1997.
</TABLE>
The fund's performance reflects administrative and management
charges, while such charges are not reflected in the performance of
the index.
Past performance is no assurance of future results.
48
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
<TABLE>
--------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<S> <C>
June 30, 2000 (unaudited)
ASSETS:
Investments, at market value:
(see accompanying schedule)
Common Stocks $69,041,670
Preferred Stocks 20,450
Short term securities 2,199,211
-----------
Total investments 71,261,331
Cash (20,210)
Broker receivable 895,288
Dividends receivable 59,641
-----------
Total assets 72,196,050
-----------
LIABILITIES:
Payable to Conning Asset Management
Company 15,965
Payable to General American Life
Insurance Company 3,193
Payable to broker 947,291
-----------
Total liabilities 966,449
-----------
Total net assets $71,229,601
===========
TOTAL SHARES OF CAPITAL STOCK OUTSTANDING 1,713,801
Net asset value per share (Total net
assets divided by total shares of
capital stock outstanding) $ 41.56
TOTAL AMORTIZED COST OF INVESTMENTS $81,001,346
</TABLE>
<TABLE>
--------------------------------------------------------------------
STATEMENT OF OPERATIONS
<S> <C>
For the six months ended June 30, 2000
(unaudited)
INVESTMENT INCOME:
Dividends $ 326,005
Interest 142,808
------------
Total investment income 468,813
------------
EXPENSES:
Investment management charge 91,397
Administrative charge 18,279
------------
Total expenses 109,676
------------
Net investment income 359,137
------------
NET REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 11,407,769
------------
NET UNREALIZED LOSS ON INVESTMENTS:
Net unrealized loss on investments (12,157,796)
------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (390,890)
============
</TABLE>
<PAGE>
<TABLE>
---------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30 DECEMBER 31
------------- -----------
2000<F*> 1999
------------- -----------
<S> <C> <C>
Operations:
Net investment income $ 359,137 $ 622,165
Net realized gain on investments 11,407,769 2,262,058
Net unrealized loss on investments (12,157,796) (5,135,892)
------------ -----------
Net decrease in net assets from operations (390,890) (2,251,669)
Capital share transactions (1,863,770) 2,742,426
------------ -----------
Net increase (decrease) in net assets (2,254,660) 490,757
Net assets, beginning of period 73,484,261 72,993,504
------------ -----------
Net assets, end of period $ 71,229,601 $73,484,261
============ ===========
<FN>
<F*> Unaudited
</TABLE>
See accompanying notes to the financial statements.
49
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND<F*>
<TABLE>
--------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<CAPTION>
SIX MONTHS EIGHT MONTHS
ENDED YEAR ENDED ENDED
JUNE 30 DECEMBER 31 DECEMBER 31
---------- ----------------------- ------------
2000<F**> 1999 1998 1997
---------- ------- ------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year <F1> $ 41.84 $ 43.55 $ 48.27 $ 36.84
------- ------- ------- -------
Income from operations:
Net investment income 0.20 0.38 0.35 0.29
Net realized and unrealized gain (loss) on investments (0.48) (2.09) (5.07) 11.14
------- ------- ------- -------
Net increase (decrease) in asset value per share (0.28) (1.71) (4.72) 11.43
------- ------- ------- -------
Net asset value, end of period $ 41.56 $ 41.84 $ 43.55 $ 48.27
======= ======= ======= =======
Total return <F2> (0.67%) (3.93%) (9.78%) 31.03%
Net assets, end of period (in thousands) $71,230 $73,484 $72,994 $77,646
Ratio of expenses to average net assets <F3> 0.30% 0.30% 0.30% 0.30%
Ratio of net investment income to average net
assets <F3> 0.99% 0.89% 0.76% 0.97%
Portfolio turnover rate 81.19% 23.11% 18.77% 24.47%
<FN>
Notes:
<F1> Components are computed and accumulated on a daily basis.
<F2> Total return is not annualized for the eight months ended December 31,
1997. The total return information shown in this table does not reflect
expenses that apply to the separate accounts investing in the Fund or to the
insurance or variable annuity contracts. Inclusion of these charges would
reduce the total return figures for all periods shown.
<F3> Computed on an annualized basis.
<F*> Small-Cap Equity Fund began operations May 1, 1997. On May 1, 1997, the
assets of General American Separate Account No. 20 were exchanged for shares in
the Small-Cap Equity Fund. The net assets, beginning of period, are equal to
the market value of the net assets transferred on April 30, 1997. In exchange
for the net assets transferred, 1,477,554 shares of the Small-Cap Equity Fund
were issued to the General American Separate No. 20.
<F**> Unaudited
</TABLE>
See accompanying notes to the financial statements.
50
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
<TABLE>
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Aerospace & Military Technology
(3.31%)
Aviall Inc.<F*> 31,100 $ 153,542
Ducommun Inc. 28,900 344,979
EDO Corp. 30,200 190,622
Fairchild Corp.<F*> 31,174 151,973
Heico Corp.<F*> 31,100 443,175
Heico Corp.-Class A<F*> 31,100 380,975
Hi-Shear Industries 18,200 45,500
Simula Inc. 30,100 60,200
Transtechnology Corp. 29,100 320,100
United Industrial Corp. 29,200 266,449
------------
2,357,515
------------
Air Transport (0.19%)
Airnet Systems Inc. 29,600 135,035
------------
Apparel (2.70%)
Barry (r.g.) 29,600 114,699
Burlington Industries Inc. 31,100 52,466
Chic by HIS Inc. 22,300 892
Cone Mills Corp. 31,100 192,416
Gerber Childrenswear Inc. 29,900 158,829
Hartmarx Corp. 31,100 79,678
Mossimo Inc. 31,100 24,289
Oxford Industries<F*> 30,000 540,000
Pillowtex Corp. 31,100 132,175
Skechers Usa Inc.-Class A<F*> 31,100 491,753
Syms Corp.<F*> 31,100 122,441
Worldtex Inc.<F*> 33,410 11,460
------------
1,921,098
------------
Business Machines (1.90%)
Applied Magnetics Corp.<F*> 52,085 781
Ballantyne of Omaha Inc. 31,100 68,016
Cascade Corp.<F*> 30,000 358,110
ECC International 30,225 103,883
Genesis Worldwide Inc. 23,600 19,163
Minolta-Qms Inc.<F*> 31,100 97,188
Nashua Corp.<F*> 29,100 240,075
Osmonics Inc. 28,800 266,400
Pameco Corp. 29,100 74,554
Par Technology<F*> 30,100 127,925
------------
1,356,095
------------
Business Services (8.24%)
American Retirement Corp. 31,100 172,977
Angelica Corp.<F*> 29,500 236,000
Aviation Sales Company 31,100 192,415
Bush Industries 31,150 498,400
Capital Senior Living Corp. 31,100 91,340
Carriage Services Inc. Class A 31,100 104,963
Cotelligent Inc. 31,100 176,866
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Business Services (continued)
E4L Inc.<F*> 34,300 $ 27,852
Ennis Business Forms 31,100 248,800
GP Strategies Corp. 29,200 138,700
Healthplan Services Corp.<F*> 30,000 69,360
JLK Direct Distribution 30,100 154,263
MSC Software Corp. 30,100 280,291
Mac-Gray Corp. 29,100 127,313
Met-Pro Corp.<F*> 30,000 270,000
Neff Corp. 30,200 115,122
Pediatrix Medical Group Inc. 31,100 361,538
Rightchoice Managed Care<F*> 29,200 459,900
TRC Companies Inc.<F*> 29,500 339,250
Tetra Technologies Inc. 31,100 441,216
Transmedia Network Inc. 28,800 122,400
Transportation Components 28,000 54,236
Unifirst Corp.<F*> 30,000 236,250
Unigraphics Solutions Inc. 30,000 585,000
Wackenhut Corp. 31,118 291,731
Waterlink Inc. 29,600 74,000
------------
5,870,183
------------
Chemicals (2.94%)
Chemfab Inc. 28,900 343,187
General Chemical Group Inc. 33,100 22,740
Mcwhorter Technologies 31,100 604,491
Octel Corp. 29,600 231,235
Oil-Dri Corp. 29,100 261,900
Quaker Chemical<F*> 29,400 510,825
Terra Nitrogen Co. LP 29,400 117,600
------------
2,091,978
------------
Collateralized Asset Backed
Securities (0.20%)
Clarion Commercial Hldgs. -
A<F*> 25,900 139,213
------------
Commercial Banking (2.52%)
American Banknote Corp.<F*> 38,100 1,181
Bankatlantic Bancorp Inc. -
A<F*> 31,100 116,625
Community Bank System Inc.<F*> 31,100 690,016
First Banks America Inc.<F*> 27,700 512,450
Sterling Bancorp 30,075 473,681
------------
1,793,953
------------
Construction (3.04%)
Berlitz International 31,100 279,899
CMI Corp.<F*> 31,100 108,850
Cavalier Homes Inc. 26,612 43,245
Congoleum Corp. 29,900 119,600
Corrpro Companies Inc.<F*> 31,100 101,075
Dayton Superior Corp. 4,100 110,442
International Aluminum
Corp.<F*> 30,000 517,500
(continued)
51
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Construction (continued)
M/I Schottenstein Homes
Inc.<F*> 31,100 $ 489,825
Washington Homes Inc.<F*> 29,800 178,800
Willbros Group Inc. 31,100 213,813
------------
2,163,049
------------
Consumer Durables (3.13%)
Chromcraft Revington 24,400 283,649
Craig Corp.<F*> 28,000 108,500
Crown Crafts Inc. 31,100 34,988
Enesco Group Inc.<F*> 31,100 147,725
Mikasa Inc.<F*> 29,100 320,100
Royal Appliance Mfg Co.<F*> 31,100 176,866
SL Industries Inc. 29,608 288,678
Starrett LS 31,100 544,250
Water Pik Technologies Inc. 30,000 187,500
Global-Tech Appliances Inc. 29,600 140,600
------------
2,232,856
------------
Containers (0.26%)
Bway Corp. 27,700 183,513
------------
Domestic Oil (5.50%)
Comstock Resources Inc. 31,100 248,798
Cross Timbers Royalty Trust 29,000 400,548
Getty Petroleum Marketing 29,700 126,225
Giant Industries 31,100 244,913
Goodrich Petroleum Corp. 30,000 138,750
Howell Corp.<F*> 29,300 278,350
Kaneb Services<F*> 31,100 124,400
Key Production Company Inc. 31,100 544,250
Meridian Resource Corp. 31,100 176,866
Patina Oil & Gas Corp.<F*> 31,100 645,325
Penn Virginia Corp.<F*> 30,200 743,675
Range Resources Corp. 31,100 97,188
Tokheim Corp.<F*> 31,100 50,538
Wiser Oil Co. 30,700 95,938
------------
3,915,764
------------
Drugs & Medicines (1.15%)
Advocat Inc.<F*> 10,900 3,814
Hanger Orthopedic Group Inc. 31,100 153,541
Molecular Biosystems 27,800 17,375
Omega Protein Corp. 29,300 58,600
Pharmaceutical Resources 35,100 184,275
Sunrise Medical 29,700 144,788
Utah Medical Products 24,000 163,488
Weider Nutrition Intl Inc.<F*> 31,100 93,300
------------
819,181
------------
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Electronics (1.97%)
Bell Industries Inc.<F*> 31,112 $ 81,668
Chyron Corp.<F*> 31,100 89,413
Franklin Electronic Publishing 31,100 276,013
Sparton<F*> 30,100 124,163
Tech-Sym<F*> 29,600 832,500
Global Sources Ltd. 1 25
------------
1,403,782
------------
Energy & Utilities (0.73%)
Cascade Natural Gas Corp. 31,100 518,966
------------
Energy Raw Materials (0.30%)
Wilshire Oil Co. of Texas<F*> 29,592 116,503
Zapata Corp. 31,140 97,313
------------
213,816
------------
Finance (Non-Banking) (6.11%)
Advest Group 30,600 640,671
American Residential
Investment Trust<F*> 31,100 128,288
Anthracite Capital Inc.<F*> 31,100 221,588
Atlanta Sosnoff Capital 30,400 304,000
Bluegreen Corp.<F*> 31,148 85,657
Delta Financial Corp. 30,000 48,750
Federal Agricultural Mortgage
Corp. 23,700 402,900
First Republic Bank<F*> 30,760 613,262
Gabelli Asset Management
Inc.-Cl. A<F*> 30,700 767,500
Gabelli Utility Trust 29,200 231,760
Hallwood 31,150 241,413
Microfinancial Inc.<F*> 27,500 275,000
Nuveen Ny Dividend Adv.
Muni.<F*> 29,400 374,850
Unicapital Corp. 35,000 17,500
------------
4,353,139
------------
Food & Agriculture (1.14%)
Cooker Restaurant Corp. 30,600 87,974
Graphic Packaging Intl Corp. 31,100 66,088
Pepsiamericas Inc.<F*> 29,900 89,700
Pilgrims Pride Corp.<F*> 30,700 166,916
Tasty Baking Co.<F*> 27,500 352,330
Vlasic Foods Int'l. 31,100 50,538
------------
813,546
------------
Gold (0.47%)
Coeur D'alene Mines Corp. 31,100 75,790
Goldcorp Inc-Cl. B 23,100 225,225
(continued)
52
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Gold (continued)
Hecla Mining Co. 31,100 $ 34,988
------------
336,003
------------
Industrial Miscellaneous (5.96%)
Alamo Group<F*> 28,800 360,000
Aztec Manufacturing<F*> 30,100 489,124
Circuit City Stores Carmax 31,100 104,962
Cornell Companies Inc. 31,100 248,800
Donnelly Corp.<F*> 29,200 379,600
Gundle/slt Environmental Inc. 30,400 114,000
Industrial Distribution 30,300 75,750
Lydall Inc. 31,100 330,438
Media Arts Group Inc. 29,500 119,829
Oakwood Homes Corp.<F*> 31,100 56,353
Penn Engineering &
Manufacturing<F*> 21,700 699,825
Premiumwear Inc. 31,100 415,963
Raytech Corp-del 29,000 94,250
Sola International Inc. 31,100 151,613
TB Wood's Corp.<F*> 28,300 293,613
Titan International Inc.<F*> 31,100 165,203
Transpro Inc.<F*> 28,900 146,292
------------
4,245,615
------------
Insurance (3.68%)
Acceptance Insurance Co.<F*> 31,128 155,639
American Med Security Group 29,600 203,500
Frontier Insurance Group Inc. 42,500 26,563
Gainsco Inc.<F*> 30,400 152,000
Highlands Insurance Group 29,200 273,750
Meadowbrook Insurance
Group<F*> 28,400 145,550
Nymagic Inc.<F*> 29,400 418,950
Penn-America Group Inc.<F*> 31,100 244,913
Penn Treaty American 30,000 510,000
United Wisconsin Services<F*> 30,300 164,741
Vesta Insurance Group Inc.<F*> 31,100 192,416
American Safety Ins. Group 31,100 130,216
------------
2,618,238
------------
International Oil (0.37%)
Benton Oil & Gas Company 31,100 85,525
EEX Corp. 31,100 180,753
------------
266,278
------------
Liquor (0.37%)
Boston Beer Company Inc. -
Class A 31,100 266,278
------------
Media (2.56%)
Canwest Global Comm. Corp.<F*> 27,900 308,630
Gray Communications System<F*> 31,100 305,153
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Media (continued)
Gray Communications
System-Cl. B<F*> 29,600 $ 288,600
Thomas Nelson Inc.<F*> 30,900 264,566
Thomas Nelson Inc.-Class B<F*> 29,900 306,475
Playboy Enterprises 29,900 351,325
------------
1,824,749
------------
Miscellaneous & Conglomerates
(0.23%)
M & F Worldwide Corp. 29,700 167,063
------------
Miscellaneous Finance (0.44%)
Stifel Financial 29,664 311,472
------------
Mortgage Backed Securities
(0.52%)
Blackrock Strategic Municiple
Fund<F*> 29,600 371,835
------------
Motor Vehicles (1.53%)
Brilliance China Auto-Sp.
Adr.<F*> 31,100 540,362
Lamson & Sessions Co. 31,100 476,203
EK Chor China Motorcycle
Co.<F*> 29,500 70,063
------------
1,086,628
------------
Non-Durables & Entertainment
(1.16%)
Culp Inc.<F*> 29,600 151,700
Dan River Inc. 30,600 145,350
John Q Hammons Hotels 29,300 146,500
Huffy Corp.<F*> 31,100 101,075
J. Alexanders Corp. 28,700 107,625
Tandycrafts Inc. 31,100 87,453
Trump Hotels & Casino Resort 31,100 87,453
------------
827,156
------------
Non-Ferrous Metals (3.89%)
Alpine Group Inc. 30,900 208,574
Atchison Casting Corp. 31,100 178,824
Hawk Corp. 28,400 214,760
Inco Ltd-Class Vbn. Shares<F*> 19,500 85,313
Oregon Steel Mills Inc.<F*> 31,100 60,241
RTI International Metals 31,100 353,763
Titanium Metals Corp. 31,100 145,766
Tremont Corp. 29,100 651,113
United Park City Mines Co. 29,140 652,008
Zemex Corp. 29,788 223,410
------------
2,773,772
------------
Optical Photographic Equipment
(0.22%)
Panavision Inc. 19,400 160,050
------------
Paper & Forest Products (1.66%)
Chesapeake Utilities Corp. 29,900 530,725
Fibermark Inc. 30,300 374,963
(continued)
53
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
Paper & Forest Products (continued)
<S> <C> <C>
Republic Group Inc. 31,129 $ 280,161
------------
1,185,849
------------
Producer Goods (7.90%)
Allied Products Corp. 32,950 51,467
Ameron International 30,500 1,090,374
Ampco-Pittsburgh Corp. 31,100 345,987
Bairnco Corp. 31,100 229,363
Brown & Sharpe Mfg. Co.<F*> 31,100 87,453
Chase Industries Inc.<F*> 35,100 326,851
Coastcast<F*> 30,300 534,038
Compx Int'l. Inc.<F*> 30,000 609,360
Falcon Products Inc.<F*> 30,500 289,750
Fansteel Inc.<F*> 31,100 122,441
Hunt Corp. 28,400 294,650
Insteel Industries 29,500 182,517
Katy Inds. Inc. 31,100 365,425
Mestek Inc.<F*> 31,100 548,138
Pentacon Inc. 29,700 64,954
Twin Disc Inc. 28,500 486,267
------------
5,629,035
------------
Railroads & Shipping (1.48%)
Sea Containers Ltd. 27,300 646,655
Todd Shipyards Corp. 30,000 236,250
OMI Corp. 31,100 169,091
------------
1,051,996
------------
Real Estate (1.93%)
America First Mortgage
Investment<F*> 29,800 149,000
Amrep Corp.<F*> 31,100 174,938
Annaly Mortgage Management<F*> 30,200 268,025
Apex Mortgage Capital Inc.<F*> 28,800 244,800
Grubb & Ellis Co.<F*> 30,400 178,600
Laser Mortgage Mgmt. Inc.<F*> 29,200 111,310
Milestone Properties Inc. 2,000 7,374
Novastar Financial Inc.<F*> 27,500 104,830
Urstadt Biddle-Cl. A<F*> 19,000 135,375
------------
1,374,252
------------
Retail (7.68%)
Ag. Services of America 31,100 474,274
Bombay Company 31,100 91,341
Cameron Ashley Building Prod. 25,900 474,281
Catalina Lighting Inc.<F*> 28,300 134,425
Chart House Enterprises<F*> 30,500 167,750
Cole National Corp.<F*> 30,300 212,100
Dave & Buster's Inc. 29,800 186,250
Delco Remy 30,000 249,360
Flooring America Inc. 31,100 2,892
<PAGE>
<CAPTION>
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
<S> <C> <C>
Retail (continued)
Furr's Restaurant Group Inc. 29,900 $ 87,816
Gottschalks Inc.<F*> 30,000 189,360
Hancock Fabrics Inc.<F*> 29,700 126,225
Haverty Furniture Co.<F*> 14,000 154,000
Homebase Inc. 31,100 48,578
Jo-Ann Stores Inc.-Cl. B 29,400 224,175
Lithia Motors Inc.-Cl. A 30,500 407,938
Marinemax Inc. 30,700 214,900
Mortons Restaurant Group<F*> 29,600 636,400
Piccadilly Cafeterias Inc. 37,600 105,731
RDO Equipment Co. 29,500 162,250
Rowe Furniture Corp. 31,170 118,820
Sizzler International Inc.<F*> 31,100 79,678
Sport Supply Group Inc.<F*> 29,900 138,288
The Sports Authority 31,100 34,988
Star Gas Partner-Sen Sub. Uts. 14,800 98,968
UNO Restaurant Corp. 31,135 332,740
Watsco Inc. 4,100 51,250
World Fuel Services Corp. 31,125 268,453
------------
5,473,231
------------
Soaps & Cosmetics (1.19%)
Carson Inc. 29,100 130,951
Guest Supply Inc. 28,900 525,604
Revlon Inc. 30,200 190,622
------------
847,177
------------
Steel (1.17%)
Amcast Industrial Corp.<F*> 30,000 262,500
Birmingham Steel 31,100 120,513
Huntco Inc. 29,600 79,535
Keystone Consolidated
Industries<F*> 28,600 107,250
Rouge Industries Inc.-Class
A<F*> 31,100 93,300
WHX Corp. 31,000 170,500
------------
833,598
------------
Tires Rubber Goods (0.23%)
China Tire Holdings Ltd.<F*> 30,600 166,372
------------
Tobacco (0.29%)
Dimon Inc.<F*> 31,100 66,087
Standard Commercial Corp.<F*> 31,144 142,079
------------
208,166
------------
Travel & Recreation (2.36%)
American Skiing Company 29,800 81,949
Carmike Cinemas 31,100 120,512
Global Vacation Group Inc. 29,800 87,523
Jackpot Enterprises<F*> 31,119 392,877
(continued)
54
<PAGE>
<PAGE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY SMALL-CAP EQUITY FUND
--------------------------------------------------------------------
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
--------------------------------------------------------
MARKET
COMMON STOCK SHARES VALUE
--------------------------------------------------------
Travel & Recreation (continued)
<S> <C> <C>
K2 Inc. 30,400 $ 252,685
Lodgian Inc. 31,100 75,791
Meristar Hotels & Resorts Inc. 31,100 89,413
Resortquest Int'l. Inc. 30,000 153,750
Silverleaf Resorts Inc. 30,000 80,610
Sunburst Hospitality Corp. 29,500 130,892
Sunterra Corp. 31,100 7,153
Westcoast Hospitality Corp. 29,300 205,100
------------
1,678,255
------------
Trucking & Freight (1.26%)
Allied Holdings Inc. 29,200 175,200
Greenbrier Companies Inc.<F*> 29,400 213,150
International Shipholding<F*> 29,425 257,469
Maritrans Inc.<F*> 29,200 177,010
Matlack Systems Inc. 30,000 65,610
------------
888,439
------------
Utilities Electrical & Gas
(3.04%)
Bangor Hydro Electric 31,000 726,547
Central Vermont Public Service 31,100 342,100
Chart Industries 31,125 151,734
Conectiv Inc.-Class A<F*> 28,600 697,125
Green Mountain Power Corp. 30,300 249,975
------------
2,167,481
------------
TOTAL COMMON STOCK (96.92%)
(COST $78,773,505) 69,041,670
------------
<CAPTION>
---------------------------------------------------------
PAR MARKET
CONTINGENT RIGHTS VALUE VALUE
---------------------------------------------------------
<S> <C> <C>
(0.00%)
Hills Store Value Rights $ 14,300 $ 0
Wahlco Litigation Rights 1,100 0
------------
0
------------
TOTAL (0.00%)
(AMORTIZED COST $0) 0
------------
<CAPTION>
---------------------------------------------------------
MARKET
PREFERRED STOCK SHARES VALUE
---------------------------------------------------------
<S> <C> <C>
(0.03%)
O'Sullivan Industries 40,900 20,450
------------
TOTAL (0.03%)
(AMORTIZED COST $28,630) 20,450
------------
<CAPTION>
---------------------------------------------------------
PAR MARKET
SHORT TERM INVESTMENTS VALUE VALUE
---------------------------------------------------------
<S> <C> <C>
Commercial Paper (3.09%)
Centennial Energy Holdings,
7.20%, due 07/03/2000 $ 2,200,00 2,199,211
------------
TOTAL SHORT TERM SECURITIES
(3.09%)
(AMORTIZED COST $2,199,211) 2,199,211
------------
TOTAL INVESTMENTS (100.04%)
(AMORTIZED COST
$81,001,346) 71,261,331
Other net liabilities
(-0.04%) (31,730)
------------
TOTAL NET ASSETS (100.00%) $ 71,229,601
============
<FN>
<F*> Non-income producing securities.
</TABLE>
See accompanying notes to financial statements.
55
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
NOTE 1--ORGANIZATION
General American Capital Company (the Company), commenced operations
on October 1, 1987, and is registered under the Investment Company
Act of 1940 as amended, as an open-end diversified management
investment company. The Company offers to its shareholders eight
separate investment funds (the Funds) which operate as distinct
investment vehicles. These are the S & P 500 Index Fund, Money
Market Fund, Bond Index Fund, Managed Equity Fund, Asset Allocation
Fund, International Index Fund, Mid-Cap Equity Fund and Small-Cap
Equity Fund. The International Index and Mid-Cap Equity Funds began
operations on February 16, 1993. The Small-Cap Equity Fund began
operations on May 1, 1997. As of June 30, 2000, the Company sells
its shares to separate accounts established by General American Life
Insurance Company (General American), RGA Reinsurance Company (RGA)
a wholly owned subsidiary of Reinsurance Group of America, Inc.,
which is a majority owned subsidiary of General American, Security
Equity Life Insurance Company (Security Equity), Cova Financial
Services Life Insurance Company, Cova Financial Life Insurance, and
First Cova Financial Life Insurance Company, wholly owned
subsidiaries of General American Life Insurance Company.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
followed by the Company in the preparation of financial statements.
The policies are in conformity with generally accepted accounting
principles.
A. INVESTMENTS:
Common stocks of domestic companies are valued based on the closing sale
price on the New York Stock Exchange for securities traded on that
exchange, and for securities not so traded, at the last bid price of
over-the-counter market quotations as of the close of business on June 30.
Common stocks of foreign companies are valued based on the closing sale
price on the primary exchange for which the security is listed. The market
values for bonds and short term securities with maturities of 60 days or
more at date of valuation are determined daily by an independent pricing
service based on current market conditions. Short term securities with
maturities of less than 60 days at date of valuation are valued at
amortized cost, which approximates market value.
B. REPURCHASE AGREEMENTS:
Short-term investments include repurchase agreements with a member bank of
the Federal Reserve System or a primary dealer in U.S. Government
securities. Under such agreements, the bank or primary dealer agrees to
repurchase the underlying U.S. Government securities at a mutually agreed
upon time and price.
C. FOREIGN CURRENCY TRANSLATIONS:
Securities and other assets and liabilities denominated in foreign
currencies are translated each business day into U.S. dollars based upon
the closing rate of exchange. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated into
U.S. dollars based upon the prevailing exchange rate on the respective
dates of the transactions.
In accordance with Statement of Position (SOP) 93-4, "Foreign Currency
Accounting and Financial Statement Presentation for Investment Companies,"
reported net realized gains or losses from foreign currency transactions
arise from sales of portfolio securities and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on
the Fund's books and the U.S. dollar equivalent actually received or paid.
Reported net unrealized gains and losses from foreign currency transactions
arise from changes in the value of assets and liabilities, including
investments in securities at June 30, resulting from changes in the
exchange rate.
<PAGE>
D. DERIVATIVE FINANCIAL INSTRUMENTS:
A derivative financial instrument in very general terms refers to a
security whose value is "derived" from the value of an underlying asset,
reference rate or index.
The Capital Company has a variety of reasons to use derivative instruments,
such as to attempt to protect the Company against possible changes in the
market value of its portfolio and to manage the portfolio's effective
yield, maturity and duration. All of the Company's portfolio holdings,
including derivative instruments, are marked to market each day with the
change in value reflected in the unrealized appreciation/depreciation on
securities. Upon disposition, a realized gain or loss is recognized accord-
ingly, except when taking delivery of a security underlying a futures
contract. In these instances the recognition of gain or loss is postponed
until the disposal of the security underlying the futures contract. The
Capital Company's utilization of derivative financial instruments is
substantially limited to the use of forward exchange contracts to hedge
foreign currency transactions, interest rate futures contracts to manage
interest rate risk and S&P 500 Index futures contracts to manage
performance.
Forward Foreign Currency Contracts:
The International Index Fund enters into forward exchange contracts to
hedge foreign currency transactions and not to engage in currency
speculation. The Fund's forward exchange contracts do not subject the
company to risk from exchange rate movements because gains and losses on
such contracts offset losses and gains, respectively, on the assets being
hedged. At June 30, the Company had no open foreign currency exchange
contracts that obligate it to receive or deliver currency at specified
future dates. The forward exchange contracts generally require the Company
to exchange U.S. dollars for foreign currencies at maturity, at rates
agreed to at inception of
56
<PAGE>
<PAGE>
the contracts. The U.S. dollar value of foreign currency underlying all
contractual commitments held by the Fund and the resulting unrealized
appreciation or depreciation are determined using foreign currency exchange
rates from an independent pricing service. If the counterparties to the
exchange contracts (primarily AA rated international banks) do not fulfill
their obligations to deliver the contracted currencies, the Company could
be at risk for any currency related fluctuations.
Futures Contracts:
A futures contract is an agreement involving the delivery of a particular
asset on a specified future date at an agreed upon price. The Company
generally invests in futures on U. S. Treasury Bonds and the S&P 500 Index
and typically closes the contract prior to the delivery date. Upon entering
into futures contracts, the Company maintains, in a segregated account with
a custodian, securities with a value equal to its obligation under the
futures contracts. During the period the futures contract is open, payments
are received from or made to the custodian based upon changes in the value
of the contract (the variation margin). U. S. Treasury Bond futures
contracts are entered into in the Asset Allocation Fund to hedge market
price risks of fixed-rate bonds. S&P 500 Index futures contracts are
entered into in the S & P 500 Index Fund to manage and more closely track
the performance of the S&P 500 Index.
At June 30, 2000, the Company had no open U.S. Treasury Bond futures
contracts.
E. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME:
Investment transactions are recorded on a trade date basis (date the order
to buy or sell is executed). Dividends are recognized as income on the
ex-dividend date while interest income and amortization of premium and dis-
count are recorded on an accrual basis.
F. FEDERAL INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS:
No provision for Federal income taxes is necessary because each Fund
qualifies as a "regulated investment company" under Subchapter M of the
Internal Revenue Code and intends to distribute each year substantially all
of its net investment income and realized gains to its shareholders. At
June 30, 2000, the Bond Index Fund had an accumulated capital loss
carryforward for tax purposes of $2,564,814. Of this amount, $1,702,964,
$182,350, $230,746, and $448,754 will expire on December 31, 2002, 2003,
2007, and 2008 respectively.
G. CONSENT DIVIDENDS:
The Funds follow the accounting practice known as consent dividending,
whereby substantially all of its net investment income and realized gains
are treated as being distributed daily to their shareholders and are
immediately reinvested in that Fund.
H. USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
NOTE 3--MANAGEMENT AND ADMINISTRATIVE FEES
The Company has entered into an Investment Advisory Agreement with
Conning Asset Management Company (Investment Advisor) with respect
to all of its Funds. Certain officers and directors of the Company
are also officers and directors of the Investment Advisor. For its
services to the Funds, the Investment Advisor charges a fee, which
is accrued daily against each Fund. The fees charged each Fund,
stated as an annual percentage of the average daily value of the net
assets, are:
S & P 500 Index Fund .250 Percent
Money Market Fund .125 Percent
Bond Index Fund .250 Percent
Asset Allocation Fund .500 Percent
Small-Cap Equity .250 Percent
The fee (percentage effective March 1, 1997) charged the Managed
Equity Fund is stated as a series of annual percentages of the
average daily net assets of that Fund. The percentages decrease with
respect to assets of the Fund above certain amounts as follows:
INVESTMENT
ASSETS FEE
--------------------------------------------------
First $10 million .40%
Next $20 million .30%
Balance over $30 million .25%
<PAGE>
The fee charged the International Index Fund is stated as a series
of annual percentages of the average daily net assets of that Fund.
The percentages decrease with respect to assets of the fund above
certain amounts as follows:
INVESTMENT
ASSETS FEE
--------------------------------------------------
First $10 million .50%
Next $10 million .40%
Balance over $20 million .30%
The fee charged for the Mid-Cap Equity Fund is stated as a series of
annual percentages of the average daily net assets of that Fund. The
percentages decrease with respect to assets of the Fund above
certain amounts as follows:
INVESTMENT
ASSETS FEE
--------------------------------------------------
First $10 million .55%
Next $10 million .45%
Balance over $20 million .40%
57
<PAGE>
<PAGE>
All operational expenses of the Company are paid by General
American, which charges administrative fees to each Fund in return.
Certain officers and directors of the Company are also officers and
directors of General American, RGA, Security Equity and Cova.
The administrative expenses are charged at an annual rate based on
the average daily value of the net assets in each Fund, as follows:
S & P 500 Index Fund .05 Percent
Money Market Fund .08 Percent
Bond Index Fund .05 Percent
Managed Equity Fund .10 Percent
Asset Allocation Fund .10 Percent
International Index Fund .30 Percent
Mid-Cap Equity Fund .10 Percent
Small-Cap Equity Fund .05 Percent
NOTE 4--INVESTMENT OBJECTIVES AND MANAGER CHANGES
Effective January 1, 1997, the International Equity Fund became the
International Index Fund. The investment objective of the
International Index Fund is to obtain investment results that
parallel the price and yield performance of publicly traded common
stocks in the Morgan Stanley Capital International Europe, Australia,
and Far East Index ("EAFE Index"). The portfolio manager of the
International Index Fund is Conning Asset Management Company. The
total investment advisor fees were reduced as a result of the changes.
Effective January 1, 1997, the Special Equity Fund became the
Mid-Cap Equity Fund. The investment objective of the Mid-Cap Equity
Fund is to seek sustained growth of capital by investing primarily
in common stocks of United States-based publicly traded companies
with "medium market capitalizations." "Medium market capitalization
companies" are those whose market capitalization falls within the
range of the S&P Mid-Cap 400 at the time of the Fund's investment.
The portfolio manager of Mid-Cap Equity Fund is Conning Asset
Management Company and the total management fee rate remains
unchanged from that of the Special Equity Fund.
Effective March 1, 1997, the portfolio manager for the Managed
Equity Fund became Conning Asset Management Company. The total
investment advisor charges were reduced due to this change.
The Small-Cap Equity Fund commenced operations on May 1, 1997
subsequent to a transfer of assets from General American Life
Insurance Company Separate Account No. 20, which had similar
investment objectives, policies, and limitations, in exchange for
shares of the Small-Cap Equity Fund. Separate Account No. 20 was not
registered under the Registered Investment Company Act of 1940 and
has a different fee and expense structure than the Small-Cap Equity
Fund. While Separate Account No. 20 continues to exist, its assets
now consist solely of shares of the Small-Cap Equity Fund. The
Small-Cap Equity Fund's portfolio of investments on May 1, 1997 was
the same as the portfolio of Separate Account No. 20 immediately
prior to the transfer. Separate accounts which invested in Separate
Account No. 20 prior to the transfer now invest directly in the
Small-Cap Equity Fund. The Small-Cap Equity Fund seeks to provide a
rate of return that corresponds to the performance of the common
stock of small companies, while incurring a level of risk that is
generally equal to the risks associated with small company common
stock. The Fund attempts to duplicate the performance of the
smallest 20% of companies, based on capitalization size, that are
based in the United States and listed on the New York Stock
Exchange.
NOTE 5--INVESTMENTS
The amortized cost of investments for federal income tax purposes as
of June 30, 2000, is as follows:
<TABLE>
<CAPTION>
S & P 500 MONEY BOND MANAGED
INDEX MARKET INDEX EQUITY
FUND FUND FUND FUND
------------ ------------- ------------ -----------
<S> <C> <C> <C> <C>
Bonds $ -0- $ -0- $102,022,254 $ -0-
Common stocks 452,891,055 -0- -0- 51,459,998
Preferred stocks -0- -0- -0- -0-
Short term
securities 2,919,614 244,332,086 865,000 450,000
------------ ------------ ------------ -----------
Total $455,810,669 $244,332,086 $102,887,254 $51,909,998
============ ============ ============ ===========
<PAGE>
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ------------ -----------
<S> <C> <C> <C> <C>
Bonds $ 32,756,763 $ 657 $ -0- $ -0-
Common stocks 75,585,846 10,451,142 8,294,069 78,773,505
Preferred stocks -0- -0- -0- 28,630
Warrants -0- 2,900 -0- -0-
Short term
securities 1,620,000 290,000 200,000 2,199,211
------------ ------------ ------------ -----------
Total $109,962,609 $ 10,744,699 $ 8,494,069 $81,001,346
============ ============ ============ ===========
</TABLE>
Gross unrealized gains and losses by fund for the period ended June
30, 2000 excluding the Money Market Fund, which has no unrealized
gains or losses, are as follows:
<TABLE>
<CAPTION>
S & P 500 BOND MANAGED
INDEX INDEX EQUITY
FUND FUND FUND
------------ ------------ -----------
<S> <C> <C> <C>
Unrealized gains $362,390,917 $ 899,343 $10,121,216
Unrealized losses 46,387,054 2,688,946 4,636,015
------------ ------------ -----------
Net unrealized
gain (loss) on
investments $316,003,863 $ (1,789,603) $ 5,485,201
============ ============ ===========
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ------------ -----------
<S> <C> <C> <C> <C>
Unrealized gains $ 55,493,250 $ 5,325,690 $ 2,234,734 $ 4,126,224
Unrealized losses 5,768,278 2,428,913 682,570 13,866,239
------------ ------------ ------------ -----------
Net unrealized
gain (loss) on
investments $ 49,724,972 $ 2,896,777 $ 1,552,164 $(9,740,015)
============ ============ ============ ===========
</TABLE>
58
<PAGE>
<PAGE>
Purchases and proceeds from sales and maturities of other than short
term securities and United States government obligations for the
period ended June 30, 2000 were as follows:
<TABLE>
<CAPTION>
S & P 500 BOND MANAGED
INDEX INDEX EQUITY
FUND FUND FUND
------------ ------------ -----------
<S> <C> <C> <C>
Purchases $ 63,656,675 $ 13,830,501 $24,801,997
============ ============ ===========
Sales and
Maturities $182,463,082 $ 1,718,165 $23,206,449
============ ============ ===========
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ------------ -----------
<S> <C> <C> <C> <C>
Purchases $ 24,744,303 $ 3,852,132 $ 4,110,164 $55,139,461
============ ============ ============ ===========
Sales and
Maturities $ 30,295,995 $ 3,634,975 $ 3,964,684 $55,676,063
============ ============ ============ ===========
</TABLE>
Purchases and proceeds from sales and maturities of United States
government obligations for the period ended June 30, 2000 were as
follows:
<TABLE>
<CAPTION>
S & P 500 MONEY BOND MANAGED
INDEX MARKET INDEX EQUITY
FUND FUND FUND FUND
------------ ------------- ------------ -----------
<S> <C> <C> <C> <C>
Purchases $ -0- $ -0- $ 24,910,162 $ -0-
============ ============ ============ ===========
Sales and
Maturities $ -0- $ -0- $ 5,906,065 $ -0-
============ ============ ============ ===========
<CAPTION>
ASSET INTERNATIONAL MID-CAP SMALL-CAP
ALLOCATION INDEX EQUITY EQUITY
FUND FUND FUND FUND
------------ ------------- ------------ -----------
<S> <C> <C> <C> <C>
Purchases $ 9,320,399 $ -0- $ -0- $ -0-
============ ============ ============ ===========
Sales and
Maturities $ 45,318 $ -0- $ -0- $ -0-
============ ============ ============ ===========
</TABLE>
NOTE 6--CAPITAL STOCK
As of June 30, 2000, in the aggregate, there were five hundred
million (500,000,000) shares of $.01 par value capital stock
authorized. On May 1, 1997 share of the Company, as noted below,
were exchanged for cash and invested assets, less any investment
related liabilities of General American Separate Account No. 20. The
unrealized appreciation at the time of the exchange was $12,703,457
for Separate Account No. 20.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
S & P 500 INDEX FUND
------------------------------------------------------------
Period ended Year ended
June 30, 2000 December 31, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 1,361,075 $ 81,395,013 2,229,547 $ 120,801,525
Shares redeemed (3,381,856) (202,313,256) (1,340,916) (72,982,746)
----------- ------------- ----------- -------------
Net increase/
decrease (2,020,781) $(120,918,243) 888,631 $ 47,818,779
=========== ============= =========== =============
<PAGE>
<CAPTION>
MONEY MARKET FUND
------------------------------------------------------------
Period ended Year ended
June 30, 2000 December 31, 1999
---------------------------- -----------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 10,020,191 $ 206,014,049 19,793,694 $ 390,585,161
Shares redeemed (10,941,222) (224,529,303) (19,355,827) (382,586,268)
----------- ------------- ----------- -------------
Net increase/
decrease (921,031) $ (18,515,254) 437,867 $ 7,998,893
=========== ============= =========== =============
<CAPTION>
BOND INDEX FUND
------------------------------------------------------------
Period ended Year ended
June 30, 2000 December 31, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 1,547,114 $ 38,524,528 918,585 $ 22,788,862
Shares redeemed (415,987) (10,301,293) (760,971) (18,773,314)
----------- ------------- ----------- -------------
Net increase 1,131,127 $ 28,223,235 157,614 $ 4,015,548
=========== ============= =========== =============
<CAPTION>
MANAGED EQUITY FUND
------------------------------------------------------------
Period ended Year ended
June 30, 2000 December 31, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 185,996 $ 6,214,920 454,594 $ 16,267,788
Shares redeemed (305,161) (10,704,758) (426,521) (15,654,170)
----------- ------------- ----------- -------------
Net increase/
decrease (119,165) $ (4,489,838) 28,073 $ 613,618
=========== ============= =========== =============
<CAPTION>
ASSET ALLOCATION FUND
---------------------------------------------------------
Period ended Year ended
June 30, 2000 December 31, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 194,719 $ 9,415,797 447,962 $ 18,307,872
Shares redeemed (222,053) (10,634,074) (481,295) (19,546,774)
----------- ------------- ----------- -------------
Net decrease (27,334) $ (1,218,277) (33,333) $ (1,238,902)
=========== ============= =========== =============
<CAPTION>
INTERNATIONAL INDEX FUND
------------------------------------------------------------
Period ended Year ended
June 30, 2000 December 31, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 35,704 $ 883,127 71,856 $ 1,535,707
Shares redeemed (26,587) (653,274) (59,924) (1,291,923)
----------- ------------- ----------- -------------
Net increase 9,117 $ 229,853 11,932 $ 243,784
=========== ============= =========== =============
<PAGE>
<CAPTION>
MID-CAP EQUITY FUND
------------------------------------------------------------
Period ended Year ended
June 30, 2000 December 31, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 41,912 $ 1,029,090 102,443 $ 2,189,769
Shares redeemed (46,938) (1,118,942) (95,869) (2,030,407)
----------- ------------- ----------- -------------
Net increase/
decrease (5,026) $ (89,852) 6,574 $ 159,362
=========== ============= =========== =============
<CAPTION>
SMALL-CAP EQUITY FUND
------------------------------------------------------------
Period ended Year ended
June 30, 2000 December 31, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 226,464 $ 9,243,388 431,691 $ 17,701,638
Shares redeemed (268,897) (11,107,158) (351,469) (14,959,212)
----------- ------------- ----------- -------------
Net increase/
decrease (42,433) $ (1,863,770) 80,222 $ 2,742,426
=========== ============= =========== =============
</TABLE>
59
<PAGE>
<PAGE>
GENERAL AMERICAN CAPITAL COMPANY
June 30, 2000
BOARD OF DIRECTORS
Theodore M. Armstrong
Alan C. Henderson
Richard A. Liddy, Chairman
Matthew P. McCauley
Harry E. Rich
INVESTMENT ADVISOR
Conning Asset Management Company
CUSTODIAN
Bank of New York
LEGAL COUNSEL
Stephen E. Roth
Sutherland, Asbill & Brennan, Washington D.C.
If distributed to prospective investors, this report
must be preceded or accompanied by a current prospectus.
The prospectus is incomplete without reference to the
financial data contained in this annual report.
60
